US Rare Earth Pacts Raise Defense and Pollution Questions
As Malaysia starts mining rare earths, pollution risks from in-situ leaching extraction are a concern in groundwater-dependent Kelantan | Image by Mohd Naeem Mohd Nor
In an article for NYSEAN Partner, Macaranga, SL Wong and Lee Kwai Han write about how in the face of US pressure on strategic minerals, rare earth processor Lynas and upcoming rare earth supplier Kelantan pursue plans in the shadow of military use and environmental impacts.
March was a busy month for Lynas Rare Earths with a slew of announcements. But the one that caught the eye – and wrath – of Malaysian NGOs was the signing of a letter of intent with the US’ Department of War.
The deal was to supply rare earth products “to support US national security and supply chain resilience objectives”.
The NGOs’ concern rests on the fact that the Australian rare earth giant mines raw materials in Australia but processes them in Malaysia. Lynas then sells these products to different clients globally.
But rare earths are integral building blocks not only in renewable infrastructure such as electric vehicles and wind turbines; they are critical in military hardware production.
As the Trump administration drags the US and the world away from climate crisis solutions towards militarization and war, could the scales tip this way for rare earth use and demand?
