US-majority-owned startup plans US$600mil rare-earth refinery in Malaysia

A US majority-owned startup named DTEC Mineral and Metal Technology has announced plans to invest US$600 million in the construction of a rare-earth refinery in Malaysia. The project aims to become a new source of critical minerals for the US, as Washington seeks to reduce its dependence on China for rare earths. CEO Milan Perlly stated that the refinery is expected to be operational within the next three years.

Rare earths are crucial for various modern products, including electric vehicles, electronics, wind turbines, and advanced weaponry. Malaysia's identified resources primarily consist of ion-adsorption clay deposits, which contain heavy rare earths valuable in high-performance magnets and other advanced technologies.

DTEC Mineral plans to construct two facilities in Malaysia, with each capable of processing 5,000 metric tonnes of rare-earth material annually, eventually leading to a combined capacity of 10,000 tonnes per year. The company is currently exploring potential locations in Malaysian states such as Kedah, Terengganu, Perak, and Negeri Sembilan.

Malaysia is estimated to possess 16.1 million tonnes of rare-earth resources, though much of it remains unproven. DTEC intends to utilize locally sourced ionic-clay deposits and potentially establish its own mine in Malaysia. The company is also preparing to export about 30 tonnes of unprocessed rare-earth material to the US for research purposes.

DTEC Mineral is owned 51% by Malaysian firm DTEC Engineering and Construction and 49% by Perlly and business partner David Greer. The company aims to list on either the Nasdaq or New York Stock Exchange. DTEC is eligible for funding from the US Export–Import Bank, US International Development Finance Corporation, and the US defense department under a trade and critical minerals pact signed between President Donald Trump and Malaysian Prime Minister Anwar Ibrahim.