Malaysia weighs easing rare earth export restrictions to meet global demand
2026-08-04 11:14:22 [Print]
Malaysia is considering allowing limited exports of unprocessed rare earths as it seeks to strengthen its role in a supply chain that underpins industries ranging from automotive manufacturing and defense to consumer goods.
The Southeast Asian nation imposed a moratorium on raw rare earth exports in 2024 to encourage greater investment in domestic processing-a common approach among resource-rich developing economies. However, authorities are now reviewing the feasibility of relaxing these restrictions amid intensifying global competition for the critical minerals, according to a senior government official.
Malaysia already holds a significant position in the global rare earths landscape as host to the expanding refining facility of Australia's Lynas Rare Earths Ltd, one of only two major producers operating outside China. The plant currently processes ore sourced from Australia, but interest-including from Lynas itself-is growing in Malaysia's own untapped rare earth deposits.
While Malaysia's proven rare earth reserves account for only about 1% of the global total, compared with China's share of more than 50%, according to Hannam & Partners Research, the country has attracted considerable attention from international miners and refiners.
The nation holds 16.1 million tonnes of "inferred reserves" of rare earths, said Syed Ibrahim. The government has previously estimated that these resources could be valued at 970 billion ringgit ($237 billion).
The Southeast Asian nation imposed a moratorium on raw rare earth exports in 2024 to encourage greater investment in domestic processing-a common approach among resource-rich developing economies. However, authorities are now reviewing the feasibility of relaxing these restrictions amid intensifying global competition for the critical minerals, according to a senior government official.
Malaysia already holds a significant position in the global rare earths landscape as host to the expanding refining facility of Australia's Lynas Rare Earths Ltd, one of only two major producers operating outside China. The plant currently processes ore sourced from Australia, but interest-including from Lynas itself-is growing in Malaysia's own untapped rare earth deposits.
While Malaysia's proven rare earth reserves account for only about 1% of the global total, compared with China's share of more than 50%, according to Hannam & Partners Research, the country has attracted considerable attention from international miners and refiners.
The nation holds 16.1 million tonnes of "inferred reserves" of rare earths, said Syed Ibrahim. The government has previously estimated that these resources could be valued at 970 billion ringgit ($237 billion).
