Malaysia Considers Easing Rare Earth Export Moratorium

The Government of Malaysia is considering easing a 2024 moratorium on the export of unprocessed rare earths to address rising global demand. Deputy Minister of Natural Resources and Environmental Sustainability Syed Ibrahim Syed Noh stated that the government is assessing the feasibility of renewed exports following pressure from investors and interest from the United States, Australia, France, and India.

Any approved exports would be conditional upon receiving inbound investments and technology transfers. Malaysia also requires that these minerals be used for research and development outside the country. This potential shift follows export controls imposed by China and a critical minerals pact signed between Malaysia and U.S. President Donald Trump last year.

Malaysia aims to establish itself as a regional hub for critical minerals by 2030. To achieve this, the government is prioritizing the diversification of technology sources and the increase of domestic value through the construction of downstream processing plants. Private sector activity continues in the region, with the Australian producer Lynas Rare Earths Ltd pursuing a deal with the U.S. military and the French firm Carester SAS planning a separation plant in Perak.