The governments of the United States and Malaysia have signed a Memorandum of Understanding (MOU) to enhance cooperation on critical minerals supply chains. The agreement was signed in Kuala Lumpur on October 26, 2025, by U.S. President Donald J. Trump and Malaysian Prime Minister Anwar Ibrahim.
According to the document, both countries aim to strengthen governance in the critical minerals sector, promote business partnerships between U.S. and Malaysian companies, and expand trade and investment to integrate Malaysia more deeply into secure global supply chains. The MOU highlights a history of productive trade between the two nations and recognizes the importance of robust supply chains for critical minerals such as rare earths.
The agreement outlines several objectives: “The purpose of this Memorandum of Understanding is to strengthen cooperation between the Participants on critical minerals supply chains development and expansion; to promote trade and investment between the Participants in critical mineral resource exploration, extraction, processing and refining, manufacturing, and recycling and recovery; and to support the transition to efficient and secure critical mineral and rare earths markets to improve the security and prosperity of critical minerals and rare earths supply chains in the United States and Malaysia.”
Areas for collaboration include sharing information on best practices, supporting bilateral projects that enhance responsible mineral supply chains, holding joint meetings or workshops with government officials as well as private sector stakeholders, universities, or other groups. Both countries will work independently to determine which projects are suitable for further engagement or investment.
Additionally, participants intend to address regulatory practices by streamlining permitting processes while ensuring fair treatment of investors. They also commit “to work in good faith to strengthen the review on critical minerals tools and rare earth asset sales as determined by the respective parties’ authority/government.”
To safeguard domestic markets from unfair trading practices or non-market policies, both sides agreed “by establishing high standard marketplaces in which those who meet those high standards can trade freely, protected by a pricing framework that includes price floors or similar measures.”
Meetings at working level will be held quarterly or ad hoc if necessary. Each side retains discretion over participation in specific projects discussed during these meetings.
The MOU is not legally binding nor does it obligate funds from either party. Cooperation under this agreement depends on available resources within each government’s legal framework. Either country may discontinue participation at any time with written notice; ongoing activities prior to discontinuation will not be affected.
President Donald J. Trump signed for the United States while Prime Minister Anwar Ibrahim represented Malaysia.