India and the United States are exploring ways to tap Myanmar’s rare earth reserves, with New Delhi reportedly in talks with a powerful rebel group and Washington considering working with either opposing side of the country’s civil war, as they seek to diversify their sources for the crucial minerals.
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But analysts say their plans face formidable challenges, including risks from the ongoing conflict, treacherous terrain, and potential resistance from China, the dominant global supplier of rare earths and a crucial economic partner for Myanmar.
India’s mines ministry has asked state-run and private companies to explore collecting and transporting rare earth samples from Myanmar’s northeastern Kachin state, according to a Reuters report last week, citing sources familiar with the matter. The area is under the control of the Kachin Independence Army (KIA), one of Myanmar’s most powerful armed ethnic groups.
Washington, meanwhile, has received at least two proposals concerning rare earth exploration in Myanmar, according to earlier reports. One involves engaging the military junta that seized power in a coup in 2021, while the other proposes direct negotiation with the KIA.
Rare earths are highly sought after as they are essential for the manufacturing of tech, industrial and consumer products such as electric vehicles, wind turbines, smartphones and advanced medical equipment. The market for the elements is challenging as they are difficult and expensive to extract and process, and is further complicated by the spillover effects of the trade war between China and the US.
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Myanmar’s Kachin state, near the border with China, is a global hub for rare earth minerals.