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flag China and Malaysia discuss rare earths refinery deal to diversify supply chains amid environmental and regulatory challenges.

flag China and Malaysia are in early talks for a rare earths refinery project, with China potentially sharing processing technology in exchange for access to Malaysia’s vast rare earth deposits, aiming to diversify supply chains and counter Australia’s Lynas. flag The project, involving Malaysia’s Khazanah Nasional and a Chinese state firm, could process both light and heavy rare earths vital for clean energy and defense, but faces hurdles including environmental concerns, regulatory approvals, and uncertainties over raw material supply. flag No agreement has been finalized.

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