US-majority-owned DTEC Mineral and Metal Technology is planning a $600 million rare-earth refinery in Malaysia, with ambitions to establish two processing facilities capable of handling a combined 10,000 metric tons of material annually as the United States seeks alternative supplies beyond China.
The company expects to establish its first refinery within three years, chief executive Milan Perlly told Bloomberg. The initial facility would have an annual processing capacity of 5,000 metric tons, with a second plant planned as part of a broader expansion in Malaysia.
The investment comes as Washington and Kuala Lumpur work to strengthen rare-earth supply chains outside China, which dominates global processing of minerals used in electric vehicles, electronics, wind turbines and advanced military equipment.
DTEC has also become the first company to secure permission under Malaysia’s recently relaxed export regulations to ship unprocessed rare-earth material to the United States.
The company is preparing an initial shipment of approximately 30 metric tons for research, having received approval to export up to 700 metric tons. The material will undergo analysis to establish its composition and identify suitable processing technologies, Perlly said.
The shipment represents an early step in DTEC’s plans to develop a Malaysian refining operation capable of processing locally sourced minerals.
“The larger goal is to make Malaysia the rare-earth elements processing hub for ionic clay in the region,” Perlly said.
Under its proposed development strategy, DTEC wants to establish one refinery on Malaysia’s east coast and another on the west coast, each with a processing capacity of 5,000 metric tons annually.’
The company has held discussions with officials in Kedah, Terengganu, Perak and Negeri Sembilan as it evaluates potential locations. Final sites have not been announced.
Malaysia’s rare-earth potential is central to the company’s expansion strategy. Government estimates identify approximately 16.1 million metric tons of rare-earth resources in the country, although much of the estimated resource base has not been demonstrated to be commercially viable.
A significant portion of these resources occurs in ion-adsorption clay deposits, where rare-earth elements are relatively loosely attached to clay particles rather than embedded in hard rock.
Such deposits can potentially offer lower-cost extraction opportunities and may contain valuable heavy rare-earth elements used in high-performance magnets and other advanced technologies.
DTEC intends to develop domestic ionic-clay resources and eventually operate its own mining facility in Malaysia, Perlly said.
Its proposed refineries would add to Malaysia’s existing rare-earth processing industry, which includes Australian company Lynas Rare Earths’ major processing facility in Pahang.
DTEC’s ownership structure also reflects the cross-border nature of the proposed investment. Perlly, a Malaysian-born US citizen and former Capital One employee, and his business partner David Greer jointly control 51% of the company.
The remaining 49% is held by Malaysian firm DTEC Engineering and Construction.
The company has also outlined ambitions to pursue stock market listings in Malaysia and the United States, potentially through either the Nasdaq or the New York Stock Exchange.
DTEC is connected to a wider trade and critical minerals agreement between Washington and Kuala Lumpur. According to the company’s website, it is eligible for financing support from the Export-Import Bank of the United States, the US International Development Finance Corporation and the US Department of Defense.
No confirmed financing arrangement for the proposed refinery was disclosed in the report.
For Malaysia, the planned investment could expand domestic rare-earth processing capacity while supporting efforts to develop mineral supply chains that are less dependent on China. Its eventual contribution will depend on the company’s ability to establish the proposed facilities and develop commercially viable sources of raw material.
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