Malaysia seeks foreign partnerships, especially with China, to develop its rare earth industry amid export restrictions.

Malaysia is pursuing foreign partnerships, especially with Chinese firms, to develop its rare earth sector, leveraging 16.1 million tonnes of deposits. The government, via Khazanah Nasional, is exploring joint ventures to build refining and downstream processing facilities amid China’s export restrictions. A ban on raw rare earth exports aims to boost domestic processing, with RM10 million allocated for resource mapping in 2026. While no formal facility proposals have been received, Malaysia encourages foreign investment with local equity participation. The government confirmed it will not restrict Australia’s Lynas Rare Earths from exporting from its Pahang plant.