A coalition of organisations has warned that Putrajaya risks undermining its long-standing foreign policy of non-alignment if Lynas Rare Earths Ltd’s deal to supply rare earth oxides to the United States Department of Defense proceeds.
In an open letter to Prime Minister Anwar Ibrahim, the coalition comprising 57 groups said the agreement, valued at US$96 million (RM380 million) over four years, links Malaysia’s rare earth processing industry to foreign military supply chains.
They argued that this creates a direct tension between Malaysia’s stated diplomatic positions and its industrial footprint, particularly given Putrajaya’s repeated criticism of violence in conflict zones, including Gaza.
The coalition said the arrangement “implicates Malaysia” in the military activities of a state accused of serious violations of international humanitarian law, and warned that it risks weakening the country’s credibility as an independent voice in multilateral forums.
“This is fundamentally incompatible with Malaysia’s longstanding commitment to peace and its consistent opposition to the use of force in international relations,” they said.
It added that allowing such a supply chain link to a state waging wars could compromise Malaysia’s principled positions on conflicts, including Palestine, Iran, and beyond.
They urged the government to ensure that Lynas operations do not contribute to internationally wrongful acts, and called for an independent human rights and international humanitarian law due diligence audit of the supply chain.
Separately, Malaysian Consultative Council of Islamic Organisations president Azmi Abdul Hamid also voiced similar concerns and urged Putrajaya to immediately audit Lynas’ operations and export channels, suspend any supplies tied to military end use, and impose strict controls on strategic mineral exports.
Sovereignty at stake
In the letter, the coalition recommended new domestic safeguards to prevent Malaysian-linked companies from becoming complicit in international crimes.
They also argued that allowing Malaysian-based operations to support a foreign power’s war efforts could also compromise national sovereignty, as it may place domestic industrial infrastructure in the service of external military objectives.
The letter further highlighted longstanding environmental concerns surrounding the Lynas plant in Gebeng, Pahang, particularly over radioactive waste management, saying the link to military supply chains compounds the ethical burden on affected communities.
It further cited Malaysia’s obligations under international law, including the United Nations framework on state responsibility, arguing that Putrajaya must avoid knowingly aiding acts that could constitute grave breaches of international humanitarian law.
The coalition referenced recent public statements by Anwar, including his condemnation of US-backed actions in Gaza, as part of the broader context for their concerns.
“In this context, supplying rare earth oxides processed at the Gebeng, Pahang, facility to the US Department of Defense presents a real and foreseeable risk that Lynas, an entity operating under Malaysian jurisdiction and regulatory authority, becomes complicit in violations of international law.”
It added that rare earth oxides are key inputs for military technologies, including precision-guided munitions and defence systems, raising concerns that materials refined in Malaysia could be used in operations where serious violations are alleged.
Lynas expansion plan
Last month, two pro-Palestine advocates also called for Malaysia to impose restrictions on the export of rare earth materials processed by Lynas.
On April 9, Lynas announced plans to expand its production in Malaysia with the extraction of three “heavy rare earth oxides” highly sought by industries, after China restricted its rare earth elements exports last year.
Dysprosium, terbium, and samarium are used in high-performance magnets for advanced industries such as electronics and aerospace, according to an AFP report quoting Lynas officials.
A 770-page environmental impact assessment report for a proposal to increase production at Lynas’ Gebeng plant has been put on public display and viewable online, but not downloaded, until May 9. - Mkini
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