Malaysia's rare earth industry faces challenges from geopolitical tensions

Malaysia's plans to develop its rare earth industry, valued at about $50 billion, face challenges due to reliance on Chinese technology and potential US sanctions. A minister highlighted these geopolitical risks as the country seeks to establish a domestic supply chain. Prime Minister Anwar Ibrahim previously announced intentions to expand Malaysia's role in the global rare earths market, following the discovery of significant untapped reserves. These reserves are located in several states, including Perak and Pahang. Rare earth elements are crucial for green technologies, such as electric vehicles and wind turbines. However, the ongoing US-China tech conflict complicates Malaysia's efforts to manage its rare earth mining and processing.