Malaysia Opens Doors to Foreign Firms for Rare Earth Ventures

Malaysia is welcoming foreign companies to form joint ventures with local firms to tap into its 16.1 million tonnes of rare earth deposits, as announced by Trade Minister Tengku Zafrul Aziz, according to state media on Oct 22. The country aims to bolster its midstream processing capabilities in a sector dominated by China, which recently tightened rare earth export restrictions.

Rare Earth Ventures

The Malaysian government is in talks with Chinese firms to establish a refinery through its sovereign wealth fund, Khazanah Nasional, to advance downstream activities. Prime Minister Anwar Ibrahim allocated RM10 million in the 2026 budget for mapping rare earth resources. While a ban on raw rare earth exports pushes firms to set up local operations, no new processing facility proposals have been received. Lynas Rare Earths, operating in Pahang, faces no export restrictions to its chosen markets.

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