Signal Malaysia Weighs Conditional Easing of Rare-Earth Export Moratorium

Summary

Malaysia is considering easing its moratorium on exports of unprocessed rare earths, in place since January 2024 as a short-term measure through 2027 to encourage domestic midstream processing investment. Deputy Natural Resources and Environmental Sustainability Minister Syed Ibrahim Syed Noh said pressure from Malaysian states and investors from the US, Australia, France, and India is already building. Rather than a full repeal, the government is weighing a conditional export framework requiring importers to commit to investment, technology transfer, and domestic research obligations, though no implementation timeline has been set. The reassessment comes as Western countries accelerate supply-chain diversification following China's tightening of heavy rare-earth export controls in 2025. Malaysian government surveys estimate non-radioactive ionic-adsorption clay reserves at roughly 16.1 million tonnes, worth about RM809.6 billion, with the state of Terengganu holding about 44% of the total. Lynas Rare Earths already operates the largest rare-earth processing facility outside China in Kuantan, though it currently relies on imported Australian ore rather than domestic deposits.