Malaysia aims to boost rare earth element production and refine global supply chain position

Malaysia is working to develop its rare earth element (REE) resources, aiming to extract and process 18.2 million tons of reserves by 2030. These reserves are valued at $174 billion, and Malaysia seeks to enhance its position in the global supply chain. The country is navigating a complex geopolitical landscape, balancing relationships with China, the U.S., and other partners. Malaysia is cautious about relying too heavily on Chinese technology, which could limit its trade options for finished products. By 2030, Malaysia is projected to become the second-largest REE refiner globally, holding a 12% market share. However, concerns remain about the high geopolitical risks associated with the dominance of a single country in the REE market.