Malaysian Committee to Review Lynas Rare Earths Deal With U.S. Defense Department on July 16

A Malaysian parliamentary committee will hold a hearing on July 16 to examine a $96 million rare earths supply deal signed earlier this year between Australia's Lynas Rare Earths and the U.S. Department of Defense, lawmaker Wong Chen said on Monday.

Wong, chair of the parliamentary select committee on international relations and trade, said the session aims to determine the deal's details and assess whether it violates any Malaysian policies.

Testimonies are scheduled from Lynas representatives, Malaysian government officials, environmental groups, and rights activists. The committee's findings will be submitted as recommendations to guide Malaysia's rare earths policy. The country is seeking investments to develop its domestic rare earths industry, Wong stated.

"What (are these) rare earths for?... If it's for renewable energy, we will be supportive of it, but if it's for weapons, I think we should say no to it," Wong said. Wong spoke after receiving a memorandum from about 50 protesters gathered outside parliament.

The demonstrators, including activists from Greenpeace and the Boycott, Divestment, and Sanctions movement, called for greater transparency and accountability in the rare earths supply chain. Lynas operates one of the world’s largest rare earths processing plants in Malaysia. -made weapons used by Israel in its war against Hamas in Gaza.

Muslim-majority Malaysia has long supported the Palestinian cause and maintains no diplomatic ties with Israel, Al-Monitor reported.