Malaysia seeks to ban rare earth exports

Malaysia will develop a policy to ban exports of "rare earth raw materials" to avoid exploitation and loss of resources, Prime Minister Anwar Ibrahim said on Monday (September 11th). Malaysia is home to a fraction of the world's rare earth reserves, estimated in 2019 at 30,000 metric tons.

At a bauxite storage site in Bukit Goh, rural Pahang state, October 13, 2015, Malaysia. AFP - MANAN VATSYAYANA

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It is a decision that aims to support the development of the rare earths industry in Malaysia, and could guarantee maximum yield for the Southeast Asian country. The rare earths industry is expected to contribute 9.5 billion ringgits, or 1.9 billion euros, to the country's gross domestic product (GDP) in 2025, and create nearly 7,000 jobs.

Malaysia has mineral deposits containing rare earth elements that are crucial for advanced electronics and renewable technologies. The country's geoscience department said rare earth minerals were found in ten of the country's thirteen states, on the Malay Peninsula and on the island of Borneo.

Production of semiconductor chips

Rare earth raw materials are used in the production of semiconductor chips, electric vehicles and military equipment. Malaysia's decision follows that of other countries. In August, China banned the export of gallium and germanium in response to restrictions imposed by the United States and its allies on exports of advanced technology to the country.

China accounted for 70 percent of rare earth exports in 2022, ahead of the United States, Australia, Burma and Thailand, according to the U.S. Geological Survey.

Also listenCOMMODITIES CHRONICLE - Rare earths in turn hostages of the Sino-American trade war

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