Kuala lumpur: The government has announced a temporary ban on the export of raw rare-earth elements (REE) from 2025 to 2027, aiming to foster the growth of the midstream industry in the country.
According to BERNAMA News Agency, the Ministry of Natural Resources and Environmental Sustainability (NRES) is actively engaging with both local and international stakeholders to establish local facilities for REE purification, separation, and manufacturing of REE metals, alloys, and super magnets in Malaysia. The ministry encourages government-linked companies to participate in these efforts to facilitate technology transfer and develop local expertise in the sector.
This initiative is part of the government’s strategy to develop the complete REE industry value chain, from mining to manufacturing, to maximize national returns. While several local companies are already collaborating with experts on research and development, the success of these endeavors will depend on factors such as raw material availability, financial capacity, and market demand.
The government has laid out a phased strategy for REE industry development, spanning short-term (2025-2027), medium-term (2027-2030), and long-term (post-2030) phases. During the medium-term phase, the export ban will continue, with the expectation that local processing facilities will be operational, allowing the midstream industry to source inputs globally and export surplus production. Efforts will also be made to attract investments in electric motor manufacturing and REE recycling industries.
In the long-term, Malaysia aims to establish a comprehensive industry chain from mining to recycling, positioning itself as a regional and global hub for the REE sector. A Special Task Force on REE Industry Development, chaired by the Minister of Natural Resources and Environmental Sustainability and including ministers from various economic and industrial sectors, has been formed to ensure coordinated implementation of this strategy.
Addressing concerns over the slow progress in establishing REE mining standard operating procedures (SOP), the ministry clarified that while Perak has begun REE mining projects under approved SOPs, adaptation to state-specific legislations has delayed implementation in other regions. The government emphasizes careful development at the mining stage to prevent environmental pollution and its associated costs.