KUALA LUMPUR (Nov 5): The government has agreed to provide flexibility regarding the existing moratorium on the export of raw rare earth element (REE) materials through the Guidelines for the Conditional Export of Raw Rare Earth Elements in order to attract potential investors.

The Ministry of Investment, Trade and Industry (Miti) said that currently, potential REE investors appear reluctant to invest due to the lack of a guaranteed, stable domestic supply of raw REE materials.

According to the ministry, this export flexibility is limited strictly to research and development activities.

“Furthermore, the relevant company must demonstrate a clear commitment to collaborating on the development of processing facilities in Malaysia within three years from the date the export of raw REE materials is approved,” said Miti in reply to a question from Shaharizukirnain Abd Kadir (PN-Setiu) regarding the government’s firm stance on a US$96 million (RM389 million) rare earth oxide supply agreement between Lynas and the Pentagon of the US.

Miti said the ministry’s strategy focuses on attracting domestic and international investments to develop and subsequently strengthen the midstream and downstream segments of the REE industry, particularly in high-tech manufacturing areas such as permanent magnets, advanced materials, electronic components and batteries.

To realise the aspiration of developing a national REE industry, Malaysia must leverage strategic partnerships and technology transfers both domestically and from partner nations with expertise in REE processing.

“This initiative will not only bolster local capabilities across the entire value chain, from mining activities to the manufacturing of end-products, but will also position Malaysia as a key player in the global supply chain for critical minerals,” it added.

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