In order to reduce its dependence on China's processing capabilities for rare metals, the United States is turning its attention to Southeast Asia, attempting to establish new production processes using resources from Malaysia.
A startup company controlled by American capital plans to invest $600 million (about 4.3 billion RMB) to build a rare earth refinery in Malaysia, in line with Washington’s efforts to diversify the rare earth supply chain.
The company named DTEC Minerals and Metals Technology plans to build its first factory within the next three years. According to Bloomberg's report on the 30th, CEO Milan Perlly revealed that the first factory will have an annual processing capacity of 5,000 tons. The ultimate goal is to build two factories, with a combined annual processing capacity of 10,000 tons.
"American wishes for us to achieve 10,000 tons of output." Perry stated directly.
However, this plan is currently in the stage of site selection. The company has contacted officials from several states in Malaysia, but construction has not yet begun.
It is worth noting that this American-owned company has become the first enterprise in Malaysia to be approved for exporting unrefined rare earth materials to the United States, following the relaxation of rare earth export restrictions in Malaysia.
The company is allowed to export a maximum of 700 tons of rare earth materials. Currently, it is preparing to transport about 30 tons of materials to the United States for analysis of their composition and testing of processing techniques.
The Malaysian government estimates that the country has about 16.1 million tons of rare earth resources, which may include heavy rare earths necessary for advanced technologies. However, the feasibility of commercial mining a significant portion of these resources remains to be proven.
The United States is attempting to bypass China and build a new supply chain for rare earth minerals, but it also faces practical obstacles.
According to the report "Rare Elements" published by the International Energy Agency in 2026, China accounted for 91% of the world's rare earth refining production of magnets in 2024, and its share in the manufacturing of sintered permanent magnets was even higher, reaching 94%.
The institution pointed out that the rare earth supply chain involves multiple technology-intensive processes, from mining, separation, purification to magnet manufacturing. Among these, separation is the technical core of the processing process. China's large magnet manufacturing industry has significant economies of scale, providing a stable demand for raw materials in the upstream sector.
