The United States and Malaysia have signed a Memorandum of Understanding (MoU) to enhance cooperation in the development and expansion of critical minerals supply chains. The agreement, signed in Kuala Lumpur on October 26, 2025, aims to strengthen governance in the critical minerals sector, promote partnerships between companies from both countries, and encourage trade and investment to better integrate Malaysia into global supply chains.
According to the MoU, both governments seek to build on their history of trade and investment by supporting exploration, extraction, processing, manufacturing, recovery, and recycling within the critical minerals industry. The document highlights a shared commitment to international standards for extraction and processing activities.
"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," states the agreement.
Areas of cooperation outlined include sharing information on best practices for increasing competitiveness in Malaysia’s sector as well as coordinating support for bilateral projects that foster secure supply chains. Both parties will determine independently whether specific projects are suitable for investment. Mechanisms such as meetings between government officials, workshops with private sector stakeholders or universities, joint geoscience work, information exchanges, seminars, capacity-building activities are included as possible avenues for collaboration.
The MoU also covers regulatory topics like streamlining permitting processes for projects related to critical minerals. It commits both sides "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." Furthermore, they intend "to protect their respective domestic critical minerals and rare earths markets from non-market policies and unfair trade practices" through high-standard marketplaces supported by pricing frameworks.
Implementation will involve quarterly meetings—either virtually or in person—to discuss opportunities related to supply chain trade or investments. Ad hoc meetings may be convened if urgent matters arise.
The memorandum clarifies that all cooperation is subject to available funding; it does not create legal obligations nor supersede existing agreements. Either party can discontinue participation at any time with written notice via diplomatic channels; however discontinuation should not affect ongoing activities already underway under this framework.
The MoU was signed by President Donald J. Trump for the United States government and Prime Minister Anwar Ibrahim for Malaysia.