US-backed DTEC plans US$600m rare-earth refinery in Malaysia

DTEC Mineral and Metal Technology Sdn Bhd, a Malaysian-registered startup majority-owned by US citizens, plans to invest US$600 million (about RM2.4 billion) in a rare-earth refinery in Malaysia. Chief executive Milan Perlly told Bloomberg on 30 October 2026 that the plant should be set up within three years. No site has been chosen.

A week earlier, DTEC became the first company to win an export permit under Malaysia's eased rules for raw rare earths.

The plan

• Capacity: the first refinery would process 5,000 tonnes of rare-earth material a year; the aim is two plants with 10,000 tonnes combined. "The US wants us to build 10,000 metric tons output," Perlly said
• Where: one plant on the east coast, a second on the west coast. DTEC has held talks with officials in Kedah, Terengganu, Perak and Negeri Sembilan
• Feedstock: Malaysia's ionic-clay deposits, where the elements sit loosely in clay rather than hard rock. DTEC wants its own mine in time and said in October 2025 that it had secured mining land, without naming the state
• Money: Perlly told Reuters the Export-Import Bank of the United States (EXIM) had expressed support for financing of up to US$650 million; EXIM did not comment. DTEC was part of the trade and critical minerals pact signed by Donald Trump and Anwar Ibrahim in 2025, which its website says makes it eligible for US government funding
• Listing: in Malaysia and on the Nasdaq or the New York Stock Exchange

The first export permit and Penang Port

• The permit: up to 700 tonnes of rare-earth carbonate from Perak, for research in the United States (Reuters, 27 October), shipped in tranches
• The first 30 tonnes: bought from the state of Perak and paid for upfront, Perlly told the Rare Earth Exchanges podcast. He said they were due to sail from Penang Port on 31 October for Long Beach, California. No sailing has been confirmed publicly
• Purpose: US companies and research institutions will test which technology best separates Malaysia's ionic-clay rare earths
• The condition: DTEC committed to bring proven separation technology to Malaysia and build a processing plant here, Perlly said

The rule change behind it

• The ban: raw rare-earth exports have been banned since 1 January 2024. The only exception was a pilot project with the Perak government at Kenering, Hulu Perak, which exports carbonate
• The new rules: on 7 October 2026, answering Kulim Bandar Baharu MP Roslan Hashim, the natural resources ministry said raw rare earths may now be exported for research and processing, on conditions that include developing processing in Malaysia
• The first approval: on 22 October the ministry told Bloomberg one research application had been approved, without naming it. Its priority, it said, is investment quality and technology transfer, not the number of approvals

Who is behind DTEC

• Founded: May 2025
• Owners: Perlly, a Malaysian-born US citizen who formerly worked at Capital One, and business partner David Greer own 51%. Malaysian firm DTEC Engineering and Construction holds 49%
• Others in the field: Lynas Rare Earths runs a large plant in Pahang, France's Carester plans a separation plant in Perak with Malaco Mining Group, and more than a dozen US companies are exploring projects, the US embassy said on 14 October

What is not known yet

• Site: no state, park or land size for either plant
• Technology: Perlly says only that the supplier is from a "western-aligned country"
• Finance: EXIM's support is an expression of interest, not a loan
• Shipment: whether the first 30 tonnes left Penang on 31 October

The numbers

• Malaysia's resource: about 16.1 million tonnes, valued by the government at RM970 billion, much of it not yet proven commercially
• First tranche: 30 tonnes is about 4% of the 700-tonne permit