Malaysia’s rare earths put it at the centre of big power rivalries

Sept 14, 2025 – MALAYSIA is fast becoming a coveted player in the global race for rare earths, a resource that powers everything from electric vehicles to data centres.

With China offering to help Malaysia develop its rare earth processing capabilities and Australia’s Lynas already operating a plant in Pahang, the country could soon have two competing ecosystems, wrote James Chai, a political analyst and columnist in an opinion editorial for Channel News Asia.

This comes at a time when Malaysia has confirmed deposits of 16.2 million tonnes of rare earths worth an estimated US$175bil, placing it among the top five globally.

rare earths

Given that China controls 60 per cent of mining and an even larger share of refining, access to its technology is akin to holding the master key to the global vault.

Chai pointed out that Malaysia’s leverage extends beyond natural resources.

Geography works in its favour — the Straits of Malacca is one of the world’s busiest trade routes, with Port Klang and Port Tanjung Pelepas ranked among the world’s best. Combined with favourable tariff shifts, Malaysia is positioned to benefit from the redirection of global supply chains.

For a middle state, it is unusual to hold assets that great powers want to compete for. With the right policies and diplomacy, Malaysia can emerge not just as a participant, but as a consequential middle power, he added. —