Malaysia's Rare Earths Deal Hinges on Israel Policy Conundrum

Malaysia's rare earths deal with the US is facing a stern test, as the country's government grapples with the implications of a $96 million deal with Australian mining firm Lynas. The agreement, signed in March, would see Lynas' main processing plant in Gebeng, Malaysia, supply the US with 17 rare earth elements, crucial for modern industrial production.

The activists' demand is effectively a call to ban natural rubber exports to the US because the tires might end up on Israeli vehicles in Gaza.

The deal has sparked outrage among Malaysian activists, who are urging the government to block the deal or provide guarantees that the rare earths would not end up in Israeli weapons systems. The connection between the rare earths and Israeli weapons is complex, with the materials potentially being used in a range of applications, from fighter jets to wind turbines.

The controversy highlights the delicate balance Malaysia must strike between its relationship with the US and its long-standing support for Palestinian statehood. As the government weighs its options, one thing is clear: the fate of the rare earths deal will have far-reaching implications for Malaysia's reputation and its relationships with both the US and the international community.