A strategic mining collaboration between Malaysia and France has officially entered its pilot plant phase. This project involves Malaysian miner Malaco Mining Sdn Bhd and French specialist firm Carester. The goal is to develop a localized value chain for rare earth elements (REEs), which are essential for manufacturing high-tech magnets used in electric vehicles and defense systems.

French Inter-Ministerial Delegate Benjamin Gallezot, who is on a three-day visit to Malaysia, stated that this partnership offers a unique opportunity for Malaysia to build its own technology for refining light and heavy REEs. The project follows an agreement signed last year during Prime Minister Datuk Seri Anwar Ibrahim’s visit to France.

The pilot phase will test the efficiency of refining processes on a smaller scale before moving toward full-scale industrial manufacturing. If successful, this could position Malaysia as a key player in the global supply of strategic minerals, reducing reliance on single-country suppliers. The Malaysian government is providing technical and regulatory support to ensure the project meets environmental standards.