Malaysia Allows First Raw Rare Earth Export Under New Framework

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Malaysia's first rare earth export

Highlights

The Department of Minerals and Geoscience Malaysia approved a single application to export raw rare earths for research and development under the new rules.
Malaysia has eased the moratorium on raw rare earth exports, in place since 2024, allowing unprocessed shipments for selected purposes subject to certain conditions.
Lynas Rare Earths Ltd continues to operate in Malaysia, while France's Carester SAS and more than a dozen U.S. firms are exploring investments in new separation plants.

This article was translated from the original. Read the original version by our correspondent here.

First approval under new rules

As reported by The Edge Malaysia, citing the Ministry of Natural Resources and Environmental Sustainability, a single export application was approved by the Department of Minerals and Geoscience Malaysia for research and development purposes. The ministry said this in response to a Bloomberg query, but did not name the applicant or provide further details about the shipment.

Earlier this month, Malaysia issued guidelines for the conditional export of raw rare earths, easing the moratorium that has been in force since 2024. Under the revised framework, shipments of unprocessed materials may be allowed for research and development or processing, subject to certain conditions.

The ministry said the guidelines are open to eligible applicants, including foreign companies, subject to compliance with relevant regulatory requirements. It said the priority is not the number of applications approved, but the quality of investment, technology transfer and long-term value creation.

Investment appeal and supply chain competition

Rare earths are among the world's most critical raw materials and are widely used in modern technologies, including a range of key defense applications. While China has long dominated their mining and processing, other countries, including Malaysia, are stepping up efforts to develop their own capacity and reduce dependence on Beijing.

Malaysia is currently home to operations by Australia's Lynas Rare Earths Ltd, one of only two major producers outside China, while local conglomerates including Berjaya Corp Bhd are also exploring related projects. Among other foreign companies, France's Carester SAS plans to build a rare earth separation plant in Perak with Malaysia's Malaco Mining Group, while more than a dozen U.S. firms are also exploring local opportunities.

In our earlier coverage of U.S. companies' interest in Malaysia's rare earth sector, we discussed how more than a dozen firms were assessing mining project opportunities and investments in processing facilities to build an alternative supply chain outside China. We also highlighted the role of industry forums and critical minerals partnerships in attracting capital and technology transfer to Malaysia.

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