Malaysia Critical Minerals

U.S. technologies and solutions for processing and extracting critical minerals and rare earth elements could play a key role as Malaysia looks to build a sustainable industry along the entire value chain. The Malaysian critical minerals sector offers opportunities for U.S. firms offering mineral extraction and processing solutions, including equipment, engineering services, technologies, logistics, and expertise in plant design, process optimization, and environmental compliance.  

Malaysia has identified five strategic minerals: non-radioactive rare earth elements, bauxite, tin ore, silica sand, and kaolin. Furthermore, rare earth elements have been recognized as one of four national economic “game changer” materials required by industries of the future. Malaysia’s deposits of non-radioactive rare earth elements such as Neodymium (Nd), Dysprosium (Dy), and Praseodymium (Pr) are vital for making powerful magnets needed in wind turbines and electric vehicle motors. The country’s rare earth reserves, valued at $168 billion, are particularly abundant in the Malaysian states of Terengganu, Kelantan, Pahang, Perak, and Kedah. 

In addition, Pahang is the site of the world’s largest, rare earth elements processing plant outside of China. Operated by the Australian company Lynas, that facility treats feedstock from Australia to produce rare earth oxide products for export primarily to Japan and South Korea. 

The National Advanced Materials Technology Roadmap 2021-2030 emphasizes the need to expand domestic capabilities in the downstream rare earth industry by offering value-added services like refining, fabrication, and recycling. Environmental concerns are an issue in the upstream sector as the country seeks to safeguard national resources from foreign exploitation. As a result, Malaysia is committed to identifying international partners with the technology to enable safe and sustainable mining of rare earth elements. Recent measures by Malaysia’s federal government are aimed at curbing the activities of companies that recklessly extract rare earths to be processed abroad.

Government stakeholders have expressed interest in working with U.S. firms to build out this sector through partnerships and using U.S. products and services. If you represent a U.S. company with the relevant capabilities and want to learn more, please contact Commercial Specialist Mohan Gurusamy at office.kualalumpur@trade.gov.