Startup granted permit to ship raw rare earths from Malaysia to US for research: CEO

[KUALA LUMPUR] A US majority-owned startup has received permission to export rare-earth material to the United States for research, in what its chief executive said was the first approval issued under Malaysia’s newly eased export rules.

The permit allows DTEC Mineral and Metal Technology to export up to 700 metric tons of rare-earth carbonate from Perak state, with an initial shipment of about 30 tons expected this weekend, CEO Milan Perlly said in an interview.

He said the material will be sent to US companies and research institutions to test technologies for separating and refining rare-earth elements from Malaysia’s ionic clay deposits. DTEC is registered in Malaysia with 51 per cent owned by US citizens, including Malaysian-born Perlly.

Malaysia imposed a ban on the export of raw rare earths in 2024 to protect domestic resources. But it has allowed some shipments to China — the largest producer of the critical minerals used in everything from medical equipment to cellphones — as part of a pilot mining project in Malaysia’s Perak state.

This month, Malaysia eased restrictions further, releasing guidelines on the conditional export of raw rare earths for research or processing purposes, in a bid to develop local refining capabilities and capitalise on growing demand from Western nations seeking to reduce reliance on China.

Malaysia’s natural resources ministry did not respond to a request for comment. Bloomberg reported last week the ministry had granted a single export application under the new rules, but did not name the company.

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Perlly said DTEC aims to build a processing plant in Malaysia within the next three years.

“Our purpose is to really develop Malaysian talent, know-how and an ecosystem of industries supporting rare earths expansion in the country.”

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The firm has received an expression of support from the Export-Import Bank of the United States for potential financing of up to US$650 million for the proposed Malaysian refinery, he said.

EXIM Bank and the US embassy in Kuala Lumpur did not immediately respond to requests for comment.

The embassy said on Oct 14 that more than a dozen US companies were now exploring potential upstream and midstream processing projects in Malaysia.

The South-east Asian country has some 16.1 million metric tons of rare-earth deposits, according to government estimates, but lacks the technology to mine and process them.

The cooperation comes as Washington races to develop newer and cleaner technologies in rare earths refining in a bid to break China’s dominance in the sector.

Malaysia is also actively seeking foreign investment in rare earths, marking a policy shift after years of resistance to the industry due to environmental concerns surrounding a processing plant in Pahang state. REUTERS