Malaysia to Probe Rare Earths Deal Over Potential Military Use

By Staff, Agencies

Kuala Lumpur, a Malaysian parliamentary committee will hold a hearing on July 16 to examine a $96 million rare earths supply agreement between Australia's Lynas Rare Earths and the US Department of War amid concerns that the materials could support US weapons used by “Israel” in Gaza.

The hearing was announced by parliamentary committee chairman Wong Chen, who said lawmakers will assess whether the four-year agreement complies with Malaysia's domestic policies.

Representatives from Lynas, government agencies, environmental organizations, and human rights groups are expected to testify.

Wong said Malaysia supports the export of rare earth materials for renewable energy technologies but argued that supplies intended for military purposes should not be permitted.

The hearing follows a memorandum submitted to parliament by around 50 protesters, including members of Greenpeace and the Boycott, Divestment, and Sanctions (BDS) movement, calling for greater transparency in the rare earths supply chain.

Youth organization UNDI18 has also warned that Malaysia risks becoming a hub for a non-China rare earths network serving military applications.

According to the report, the Pentagon redirected funding originally allocated for a heavy rare-earth processing facility in Texas toward purchasing output from Lynas' existing operations in Malaysia.

The agreement reportedly guarantees a minimum price of approximately $110 per kilogram for neodymium-praseodymium oxide, a key material used in high-performance magnets.

While the compound is widely used in renewable energy technologies and electric vehicles, it also has military applications, including in fighter aircraft, precision-guided munitions, missile guidance systems, and drones.

Critics argue that the central issue is not the material itself but its ultimate end use.

The hearing comes amid strong public support in Malaysia for the Palestinian cause and continued opposition to “Israeli” policies. Malaysia has no diplomatic relations with “Israel” and has consistently advocated for Palestinian statehood in international forums.