Malaysia grilled over Lynas-Pentagon rare earth deal
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Malaysian parliamentary committee pressed the government to clarify its position on the Lynas-Pentagon rare earth deal by the end of July 2024, citing risks to Malaysia’s international reputation as a supporter of Palestine.
- Lynas signed a binding letter of intent with the Pentagon in March 2024 for a proposed four-year, US$96 million supply deal of rare earth oxides critical to US military systems.
- Greenpeace Malaysia, the Malaysian Consultative Council of Islamic Organisations, and the BDS movement voiced opposition, urging the government to enforce due diligence and prevent Malaysian-processed minerals from supporting conflicts or human rights violations.
- Wong Chen, chair of the parliamentary select committee, led the July 16 hearing but declined to comment publicly on the government’s stance, while Lynas interim CEO Pol Le Roux participated without issuing public remarks.
- Malaysia holds an estimated 16.1 million tonnes of non-radioactive rare earth resources and hosts the world’s largest rare earth processing plant outside China, the Lynas Advanced Materials Plant in Gebeng.
- The U.S. signed a rare earth cooperation agreement with Malaysia in October 2025, securing access to critical minerals and committing Malaysia to not restrict exports of rare earth magnets to the United States.
Why it matters: Malaysia now faces a material dilemma: advancing strategic U.S. partnerships worth $96 million risks undermining its moral authority on Palestine and sovereignty over national resources, with civil society and lawmakers demanding enforceable oversight before rare earths flow into military supply chains.
