Lynas Rare Earths faces Malaysian scrutiny over US defense deals

The Australian company Lynas Rare Earths is facing scrutiny in Malaysia following its agreements with the United States Department of Defense. A special parliamentary commission in Malaysia met on July 16 to examine the implications of these deals, which involve rare earth elements processed at Lynas's facility in Gebeng, Pahang.

Members of parliament and civil society organizations have expressed concerns that processed rare earths could indirectly support the American military supply chain and, consequently, equipment provided to Israel. This has become a sensitive issue in Malaysia due to the country's strong support for the Palestinian cause.

Lynas operates the Mount Weld mine in Western Australia and maintains a significant processing plant in Malaysia. As a major producer of rare earths outside of China, the company plays a critical role in the supply chains for low-carbon technologies, electronics, and defense systems, including missiles, radar, and fighter jets.