Malaysia

Malaysia’s Green Party calls for ban on export of critical rare earths to US

PHM secretary Abdul Razak Ismail said the party believes the REE—though mined in Australia—are being processed in Malaysia before being supplied for defence-related purposes abroad.

Updated 4 months ago · Published on 29 Apr 2026 3:04PM

Malaysia’s Green Party calls for ban on export of critical rare earths to US
PHM reiterated longstanding environmental concerns surrounding the Lynas processing facility. - April 29, 2026

by Alfian Z.M. Tahir

PARTI Hijau Malaysia (PHM) has urged the federal government to prohibit the export of heavy rare earth elements (REE) processed at the Lynas Corporation facility in Gebeng, Pahang, citing concerns that the materials may be used in United States military systems.

In a statement, PHM secretary Abdul Razak Ismail said the party believes the REE—though mined in Australia—are being processed in Malaysia before being supplied for defence-related purposes abroad.

The party referenced a report published on April 26, 2026, by The Wall Street Journal, titled “The Pentagon Needed Rare Earths – and Found a Supplier in Malaysia.”

The report stated that the United States Department of Defence had entered into a procurement agreement worth approximately US$96 million (RM379.2 million) with Lynas.

“PHM reiterated longstanding environmental concerns surrounding the Lynas processing facility.”

“For over a decade, civil society groups and residents have raised objections to the plant’s operations, alleging that its waste management systems may pose risks of radioactive and toxic contamination to groundwater, rivers, and nearby ecosystems,” PHM said.

Lynas, however, has consistently maintained that its operations comply with international safety standards.

The party further questioned Malaysia’s obligations under a reciprocal trade agreement reportedly signed on October 26, 2025, between Prime Minister Anwar Ibrahim and US President Donald Trump.

PHM argued that a recent ruling by the US Supreme Court may have invalidated the agreement, potentially releasing Malaysia from any commitment to supply REE to the United States.

“Malaysia is not legally bound to continue these exports under the said agreement,” the statement added.

While acknowledging that the raw materials originate from Australia, PHM emphasised that exports of strategically sensitive resources—particularly those with potential military applications—should require explicit approval from the Malaysian government.

The party also framed the issue within Malaysia’s broader foreign policy stance, particularly its support for Palestinian civilians.

It questioned whether the government would permit the export of materials that could ultimately be used in military operations in conflict zones.

PHM outlined two proposed courses of action for Lynas: to immediately halt exports of critical REE to the United States, or, if it chooses to proceed, to cease operations in Malaysia and relocate its processing activities to Australia, where the raw materials are sourced. – April 29, 2026

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