Malaysia’s Rare Earth Processing Becomes a Flashpoint in US-China Supply Chain Competition
A reported US$96 million Lynas–U.S. Department of Defense rare earths arrangement has triggered Malaysian civil society backlash over concerns that processing in Pahang could link Malaysia to foreign defense supply chains. The controversy coincides with heightened Malaysia-U.S. trade uncertainty following a reported February 2026 U.S. Supreme Court ruling affecting the legal basis of a bilateral tariff arrangement, amplifying Malaysia’s strategic balancing challenges.