Sectors & markets

French-Malaysian rare earths project can meet 20% global demand, says minister

13 July 2026

KUALA LUMPUR, July 13 — The rare earths partnership between French firm Carester and local mining company Malaco Mining Sdn Bhd could eventually meet 15% to 20% of global heavy rare earths needs, according to French minister delegate for foreign trade and economic attractiveness Nicolas Forissier. Speaking at a press conference at the French embassy, Forissier highlighted that production would be split between the upcoming rare earth separation plant in Perak and Carester’s facility in south-west France, a move expected to generate significant job opportunities in Malaysia.

This venture is part of a newly announced 10-year joint agreement that includes the critical transfer of rare earth processing technology from the French company to its Malaysian partner.

A strategic three-way partnership

The project is poised to expand into a broader international collaboration, with Japan currently financing half of Carester’s French facility and expected to participate in the Carester-Malaco venture. Forissier emphasized that rare earths and critical minerals are central to a much wider strategic relationship between France and Malaysia, which currently spans energy, defence, supply chains, artificial intelligence, quantum computing, semiconductors, and aeronautics.

« What we are doing is building a sovereignty partnership, not only a trade partnership, » Forissier stated, underscoring the long-term geopolitical and economic alignment between the two nations.

France open to defence discussions

Addressing questions regarding Malaysia's defence procurement, particularly after Norway recently revoked an export licence for a missile system intended for the country, Forissier declined to comment directly on the Norwegian decision. However, he made it clear that Paris remains fully open to discussions should the Malaysian authorities wish to explore alternative solutions.

He noted that France possesses longstanding defence cooperation with Malaysia and highly reliable technological capabilities, accounting for more than 10% of global defence exports. French manufacturers are currently believed to be among several global contenders being considered by the Malaysian defence ministry to replace the naval strike missile (NSM) for the country’s littoral combat ships. This announcement concluded Forissier's two-day working visit to Malaysia aimed at deeply strengthening economic ties.

Source : Free Malaysia Today