Malaysia Opens Rare Earth Mineral Exports to United States
A 2025 memorandum establishes a new critical minerals supply chain between Malaysia and the United States.
Updated on Oct. 22, 2026 in Electric Vehicles
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In October 2025, Prime Minister Anwar Ibrahim and President Donald Trump signed a non-binding memorandum to bolster critical mineral supply chains. The agreement permits Malaysia to export rare earth minerals directly to the United States to counter tightened global export controls.
Why it matters
Western governments are actively seeking alternative rare earth supply chains following China's 2025 decision to restrict exports of critical metals. This memorandum positions Malaysia as a vital partner for U.S. industry by securing access to significant untapped mineral reserves.
Malaysia has mapped rare earth presence across 24,000 square kilometers, with estimated reserves holding a potential value of RM970 billion. The nation currently holds approximately 16.1 million tonnes of total rare earth deposits.
The players
Anwar Ibrahim
He serves as the Prime Minister of Malaysia and is a key figure in modernizing the nation's resource policy.
Donald Trump
He is the current President of the United States who signed the critical minerals memorandum.
Sultan Ibrahim
He is the Sultan of Johor and a significant investor in the Malaysian mining sector.
Lynas
This is a prominent mining and processing corporation that operates a major facility in Gebeng.
Carester
This firm is a French-based industrial player planning to develop a rare-earth separation plant in Perak.
The details
The Malaysian government has committed to unrestricted mineral exports after renewing the operating license for the Gebeng-based Lynas plant in March 2026. Extraction efforts utilize in-situ leaching, where ammonium sulphate is injected into the ground to dissolve minerals.
Timeline
1992: Asian Rare Earth plant in Perak closes.
2012: Lynas begins operating a processing plant in Gebeng.
October 2025: Anwar Ibrahim and Donald Trump sign the minerals memorandum.
March 2026: Government renews the operating licence for Lynas.
October 13, 2026: Sultan Ibrahim purchases a stake in Southern Alliance Mining.
Roadmap
This memorandum accelerates the global shift toward diversified electric vehicle battery supply chains. It positions Malaysia as a strategic counterweight to Chinese dominance in the critical minerals market.
The development of a separation plant in Perak and increased export capacity may stabilize long-term pricing for critical components used in EV manufacturing. Buyers can expect more consistent supply chain timelines as regional production capabilities expand.
The takeaway
The pivot toward Malaysian mineral deposits signifies a permanent shift in how Western automakers source raw materials for electrification. Investors should monitor ongoing extraction projects in Perak and Johor as these sites become central to international trade agreements.
Further reading
Learn more about the evolving landscape of battery component manufacturing in our Electric Vehicles section.
Source note: This article includes information reported by MalaysiaNow.
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