Malaysia has approved DTEC Mineral and Metal Technology to export up to 700 metric tonnes of rare-earth carbonate from Perak to the United States for separation and refining research, the company’s chief executive, Milan Perlly, told Reuters on 27 October 2026. The approval, which Perlly described as the first under Malaysia’s newly eased export rules, allows an initial shipment of approximately 30 tonnes to be sent for testing, although the shipment’s completion has not been independently confirmed.
A Controlled Opening for Research
Malaysia introduced restrictions on raw rare-earth exports in 2024 to encourage domestic processing and retain more value from its mineral resources. In an official parliamentary response, Malaysia’s Natural Resources and Environmental Sustainability Ministry confirmed that raw rare-earth exports may be permitted for research and development or processing, subject to conditions including commitments to develop local value-added activities.
The Natural Resources and Environmental Sustainability Ministry has confirmed that a research-export application was approved, although the specific permit details were reported by Reuters based on DTEC’s CEO. The policy is not an unrestricted reopening of raw-mineral exports. Its stated priorities include technology transfer, investment quality and long-term domestic value creation.
For Malaysia, the commercial question is whether overseas testing can accelerate the development of domestic processing capabilities without creating a lasting dependence on foreign facilities.
In an October 24 interview with Rare Earth Exchanges, Perlly described the proposed shipment as part of a broader plan to establish rare-earth processing capabilities in Malaysia. He said the company intended to bring separation technology back to the country and develop local expertise. The interview also discussed Malaysia’s expectation that the research would support domestic processing investment, making the results of the US trials central to whether the project can progress beyond laboratory testing.
Resource Potential Is Not Commercial Supply
Malaysia’s geological potential is substantial, but resource classifications require careful interpretation. A government industry study estimated approximately 16 million tonnes of total rare-earth elements in inferred resources across several regions. Separately, a parliamentary response reported 274,144 tonnes of measured rare-earth resources across nine states within a surveyed area of 103.9 square kilometres. These figures use different resource categories and scopes; neither should be treated as an equivalent quantity of economically recoverable, saleable material.
Ionic clay deposits offer a potential source of rare earths, but commercial development depends on the concentrations of individual elements, extraction efficiency and the cost of producing marketable materials.
Separation presents a further challenge. Rare-earth elements have similar chemical properties, requiring specialised processes to isolate individual elements at the required purity. Reagent consumption, water use, waste management and environmental compliance also affect project economics.
Testing Malaysian material in US facilities could help establish which technologies are technically suitable. However, laboratory results alone cannot establish commercial viability. Pilot-scale trials, recovery data, process design and credible operating-cost estimates would still be required.
An Existing Processing Industry Provides a Benchmark
Malaysia is not starting from zero. Lynas Rare Earths operates a major processing facility in the country and has expanded its product capabilities. Its FY2025 Annual Report documented the first production of separated dysprosium and terbium oxides at its Malaysian facility during the 2025 financial year. Its FY2026 Annual Report recorded the first production of samarium oxide in March 2026. These materials are used in specialist applications, including permanent magnets and other advanced technologies.
Lynas also provides a useful benchmark for the scale of commercial production. Its Malaysian facility has a nameplate capacity of approximately 22,000 tonnes of rare-earth oxides annually. The company’s FY2026 reporting recorded total ready-for-sale production of 13,089 tonnes across its operations, up from 10,462 tonnes in FY2025. These figures illustrate the difference between an established producer with operating infrastructure and a proposed refinery still at the development stage. The company-wide production totals should not be interpreted as output from the Malaysian facility alone.
This experience demonstrates the technical capabilities that can be developed in Malaysia. It also illustrates the difference between an operating industrial facility and a proposed refinery still dependent on research, financing and project development.
DTEC aims to establish a Malaysian processing plant within three years, according to Perlly. He also reported an expression of support from the US Export-Import Bank for potential financing of up to US$650 million. The bank had not independently confirmed this potential financing in the Reuters report, so it should not be treated as secured funding or a final investment decision.
The Investment Test Lies Ahead
Malaysia’s strategy will ultimately be judged by measurable outcomes: validated separation technology, confirmed feedstock supply, financing commitments, environmental approvals, construction and commercial production.
The conditional export framework could help bridge the gap between geological potential and industrial capability. But an export permit is only an enabling step. The more important question is whether research produces transferable technology, skilled local expertise and a refinery capable of operating competitively.
For Malaysia, the strategic opportunity is not simply to supply rare-earth material to overseas researchers. It is to turn that collaboration into a sustainable domestic industry that captures more value from its mineral resources.
