Nominee to be next US ambassador to Malaysia sees rare earths potential

Ionic Rare Earths

13/06/2023 22:15

By David Brunnstrom
       WASHINGTON, June 13 (Reuters) - The nominee to be the
next U.S. ambassador to Malaysia said on Tuesday he saw the
potential for the United States to expand cooperation with the
Southeast Asian country in diversifying supply chains for rare
earths and other critical minerals.
    Edgard Kagan, a career diplomat who is currently the senior
official for East Asia at the White House National Security
Council, told his Senate confirmation hearing that developing
new sources for critical minerals to ensure reliable supply
chains was a very high priority for the Biden administration.
    "The importance of working on these arrangements with
countries where we have good relationships ... is absolutely
critical," he said, adding: "I think that we have real potential
to do that in countries like Malaysia."
    "I would want to work closely with the American private
sector, with different parts of the U.S. government, and with
the Malaysian government to ensure that we're able to continue
expanding the areas of cooperation in this, support development
of resources," he said.
    Kagan said this would be done in partnership with Malaysia
"in ways that are sustainable and promote our values," but did
not elaborate on exactly what form the cooperation might take.
    He was responding to a question from U.S. Senator Chris Van
Hollen, who described Malaysia as being home to the largest
rare-earths processing plant outside of China. Van Hollen said
recent reports showed Malaysia was also home to deposits of
strategic and critical minerals including tin.
    China is the dominant global producer of rare earths needed
to fuel the green revolution of electric cars and wind turbines
as well in as defense applications such as missile production.
The United States and its allies have been seeking to diversify
sources of supply amid mounting strategic competition with
Beijing.
    Australia's Lynas Rare Earths Ltd  LYC.AX  has facility in
Malaysia that it describes as one of the largest and most modern
rare earths separation plants in the world.
    Malaysia's government has raised concerns about radiation
levels from the process of cracking and leaching at the plant,
but agreed last month to extend its operating license to import
and process rare earths until Jan. 1 next year.

 (Reporting by David Brunnstrom; editing by Edward Tobin)
 ((david.brunnstrom@thomsonreuters.com; +1-202 354 5835;
Twitter: @davidbrunnstrom;))