A coalition of organisations has warned that Putrajaya risks undermining its long-standing foreign policy of non-alignment if Lynas Rare Earths Ltd's deal to supply rare earth oxides to the United States Department of Defense proceeds.

In an open letter to Prime Minister Anwar Ibrahim, the coalition comprising 57 groups said the agreement, valued at US$96 million (RM380 million) over four years, links Malaysia’s rare earth processing industry to foreign military supply chains...