KUALA LUMPUR, Oct. 30 -- 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 ...