KUALA LUMPUR, Oct 31 — A primarily US-owned startup is planning a US$600 million (RM2.4 billion) investment in a Malaysian rare-earth refinery, aiming to develop a new critical minerals supply chain as Washington moves to reduce its reliance on China.
DTEC Mineral and Metal Technology expects to establish the facility within three years, chief executive officer Milan Perlly said in an interview. The startup recently became the first company to receive permission under Malaysia’s relaxed export regulations to ship unprocessed rare-earth material to the US, Bloomberg reported.
“The larger goal is to make Malaysia the rare-earth elements processing hub for ionic clay in the region,” Perlly said.
Much of Malaysia’s identified rare-earth wealth lies in ion-adsorption clay deposits. These elements bind loosely to clay rather than locking into hard rock, making extraction cheaper and more efficient. Crucially, they contain the heavy rare earths vital for electric vehicles, wind turbines, and advanced military technology.
DTEC Mineral plans an initial processing capacity of 5,000 tonnes annually. The company ultimately envisions two facilities in Malaysia with a combined output of 10,000 tonnes a year.
“The US wants us to build 10,000 metric tons output,” he said. “My goal is to put one plant on the east coast for 5,000 metric tons, a second plant on the west coast.”
Perlly noted the firm is evaluating sites after holding discussions with state officials in Kedah, Terengganu, Perak, and Negeri Sembilan. These new facilities would expand Malaysia’s rare-earth footprint beyond the existing Pahang operations run by Australia’s Lynas Rare Earths Ltd.
Moving forward, DTEC Mineral intends to develop locally sourced ionic-clay deposits and eventually operate its own mine. While government data places Malaysia's rare-earth resources at an estimated 16.1 million tonnes, much of this remains commercially unproven.
To determine the most suitable processing technology, the company is preparing to ship 30 tonnes of unprocessed material to the US for research, having secured approval to export up to 700 tonnes.
Perlly, a Malaysian-born US citizen and former Capital One executive, holds a 51 per cent stake in DTEC Mineral alongside business partner David Greer. Local firm DTEC Engineering and Construction owns the remaining 49 per cent.
The startup harbours ambitions for a dual listing on Bursa Malaysia and either the Nasdaq or New York Stock Exchange.
DTEC was part of a critical minerals pact signed between US President Donald Trump and Prime Minister Datuk Seri Anwar Ibrahim last year.
According to the company's website, the agreement makes DTEC eligible for funding from the Export-Import Bank of the United States, the US International Development Finance Corporation, and the Department of Defense.
