Kuala lumpur: Malaysia's head start in rare earth processing technology ensures that the nation's mineral sovereignty remains protected, even amid trade agreements with major powers, said Science, Technology and Innovation Minister Chang Lih Kang.
According to BERNAMA News Agency, Malaysia's advantage in the sector stems from its pool of local talent and abundant natural resources, including rich deposits of ion adsorption clay. Minister Chang emphasized the importance of the rare earth industry, especially given the current geopolitical climate. He highlighted the recent initiative that convened stakeholders to discuss the ecosystem and technology behind rare earth processing.
Chang stated that the government's moratorium on raw material exports underscores Malaysia's commitment to developing midstream and downstream industries. This strategy aims to mitigate vulnerabilities in the global supply chain by ensuring no single country holds a monopoly over resources.
China's dominance in global rare earth processing is notable, controlling about 70% of the capacity. In response, Malaysia is collaborating with partners, including China, to enhance its processing capabilities. Chang stressed the importance of technological sovereignty, which involves building Malaysia's technological capacity without undue reliance on any particular nation.
The recently signed memorandum of understanding (MoU) between Malaysia and the United States on rare earth elements promotes openness and transparency. Minister Chang clarified that the agreement encourages fair access and cooperation without imposing limitations on specific companies or countries.
Addressing concerns regarding the MoU's impact on Malaysia's sovereignty, Chang reassured that the agreement does not compromise the country's position, as its execution is contingent on local production capacity. He emphasized that the agreement's clauses promote openness and would not restrict companies like Lynas.
During the 47th ASEAN Summit and Related Summits, Malaysia and the US signed a comprehensive agreement aimed at strengthening bilateral economic ties, expanding market access, and enhancing supply chain resilience. As part of this agreement, Malaysia committed to providing greater preferential market access for US industrial goods and agreed not to impose bans or export quotas on essential minerals and rare earth elements to the US.