"Malaysia probes Lynas’ Pentagon rare earths supply deal" July 17, 2026

Malaysia is scrutinizing Lynas Rare Earths’ (ASX: LYC) $96 million supply agreement with the US Department of Defense after a parliamentary committee reviewed whether the deal could affect the country’s support for the Palestinian cause and future rare earths policy.

The parliamentary special select committee on international relations and international trade, chaired by MP Wong Chen, met on July 16 to examine the Australian company’s role in the US defence supply chain, according to a statement released Friday. 

The committee heard from government officials, non-governmental organizations and Lynas executives. It recommended the government develop a clearer foreign investment policy to protect Malaysia’s national interests and sovereignty and issue an official position on the matter within two weeks.

The review follows growing domestic pressure over Lynas’ four-year Pentagon agreement. More than 20 Malaysian civil society organizations, including Greenpeace Malaysia, urged greater oversight of the country’s rare earths supply chain, arguing the agreement supports the US military, which backs Israel in its war against Hamas in Gaza.

Lynas, the world’s largest rare earths producer outside China and operator of the world’s largest rare earths processing facilities in Malaysia, did not immediately respond to requests for comment.