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| Rare earth mining in Myanmar’s Kachin state fuels China’s green energy boom, but leaves behind deforestation, toxic rivers, and displaced communities. |
How Beijing’s Secret Deals with Myanmar’s Militants Keep China Ahead in the Rare Earth Race
China maintains its dominance in the rare earth market through secretive ties with Myanmar’s insurgent groups. Unregulated mining in Kachin state feeds global supply chains essential for electric vehicles and renewable energy infrastructure. After Myanmar’s 2021 coup, the number of rare earth sites skyrocketed, many under militant control. Chinese companies have secured extraction rights through covert deals, while the mining devastates local communities and the environment.
- Dr.Sanjaykumar pawar
Table of Contents
- Introduction: Clean Tech’s Dirty Secret
- What Are Rare Earths and Why They Matter
- Myanmar’s Role in the Global Rare Earth Supply Chain
- The Post-Coup Mining Boom: 240 New Sites in Four Years
- Militant-Controlled Mines: Who Holds the Power?
- China’s Strategic Leverage: Deals Beyond Diplomacy
- Environmental and Social Fallout: Myanmar’s Sacrifice Zone
- India, the U.S., and the Struggle to Compete
- Global Witness and ISP Reports: Data and Analysis
- Implications for Global Geopolitics
- China’s Green Energy Transition vs. Myanmar’s Costs
- Conclusion: Can the Rare Earth Race Be Cleaned Up?
- Frequently Asked Questions (FAQ)
1. Introduction: Clean Tech’s Dirty Secret
The world is racing toward a green future powered by electric vehicles, wind turbines, and smartphones. At the heart of this transition are rare earth elements — 17 obscure metals that make modern clean energy technologies possible. From the magnets in EV motors to the components inside solar panels, rare earths have become the hidden backbone of sustainable innovation.
But behind this clean energy revolution lies a troubling truth: the supply chain is far from clean. Beijing, which already refines nearly 90% of global rare earths, has quietly tightened its grip by sourcing massive quantities from neighboring Myanmar. In Kachin state, militant-controlled mining zones churn out minerals that flow directly into China, feeding global demand while bypassing regulations.
This shadowy arrangement gives China enormous leverage in the rare earth race, ensuring dominance over industries that power the world’s green transition. Yet, the costs are borne by Myanmar’s fragile borderlands. Forests are stripped, rivers poisoned, and local communities displaced — all so the world can drive electric cars and build wind farms.
The story of rare earths is a reminder that clean tech’s future depends not only on innovation but also on addressing the hidden costs of extraction.
2. What Are Rare Earths and Why They Matter
Rare earth elements (REEs) may not be familiar to everyone, but they power much of our modern world. These 17 metallic elements are the hidden backbone of technologies we use daily and the clean energy solutions of tomorrow. Despite their name, rare earths are not truly rare in nature — they are relatively abundant but difficult to find in concentrated deposits that make mining and refining profitable.
Here’s why rare earths matter so much in today’s economy:
- Electric Vehicles (EVs): Elements like neodymium and praseodymium are crucial for high-performance permanent magnets used in EV motors.
- Wind Energy: Dysprosium and terbium improve the strength and heat resistance of magnets in wind turbines, supporting global renewable energy goals.
- Consumer Electronics: Everyday gadgets, from smartphones to flat-screen TVs, rely on elements like cerium and europium for displays, batteries, and polishing.
China dominates the industry, refining nearly 90% of global REE output (U.S. Geological Survey, 2024). This monopoly gives Beijing significant leverage over supply chains, influencing industries from defense to green technology.
Simply put, rare earths are the building blocks of innovation, energy transition, and modern living — making them one of the world’s most strategic resources.
3. Myanmar’s Role in the Global Rare Earth Supply Chain
Myanmar has quietly emerged as a powerhouse in the global rare earth supply chain, second only to China itself. Nestled in the rugged hills of Kachin state, hundreds of informal mines are now central to fueling the world’s demand for rare earth elements used in electric vehicles, wind turbines, and smartphones. What makes Myanmar’s role unique is its geography — the country shares a porous border with China, allowing rare earths to flow quickly into Chinese refineries, often outside of formal regulatory channels.
According to the Institute for Strategy and Policy (ISP), Myanmar (2024), the boom has been staggering. Between 2021 and 2024, China imported over 170,000 tons of rare earths from Myanmar — a volume comparable to the combined weight of 23 Eiffel Towers. This surge followed Myanmar’s 2021 coup, which destabilized the region but opened opportunities for militant groups and local operators to expand unregulated mining.
While this trade strengthens China’s near-monopoly in global rare earth refining, it also raises tough questions. Myanmar’s fragile ecosystems and marginalized communities are bearing the brunt of extraction, highlighting the hidden costs of a so-called green energy transition.
4. The Post-Coup Mining Boom: 240 New Sites in Four Years
After Myanmar’s 2021 military coup, political chaos reshaped the country’s resource economy. The absence of central control opened the door for insurgents and local militias to seize mining territories, especially in Kachin state, which borders China. This instability gave rise to an unprecedented rare earth mining boom that now fuels global supply chains for electric vehicles and renewable energy.
Key highlights from the Institute for Strategy and Policy (ISP) March 2024 report:
- Over 240 new rare earth mining sites were established between 2021 and 2024.
- Two-thirds of these mines are located in Kachin state, a region rich in resources but scarred by conflict.
- Rebel-held areas such as Chipwi, Pangwa, and Momauk have emerged as hotspots for unregulated extraction.
For local communities, however, this boom is less about prosperity and more about survival. Mining profits often flow to armed groups and foreign companies, leaving villagers with environmental damage, polluted waterways, and forced displacement.
From a global perspective, Myanmar’s rare earth surge highlights how political instability and resource exploitation intersect, keeping China ahead in the rare earth race while raising urgent questions about sustainability and ethics.
5. Militant-Controlled Mines: Who Holds the Power?
In Myanmar’s Kachin state, the rare earth race is not decided by governments alone—it is shaped by militant-controlled mines that dictate who gets access to these critical resources. Two major players dominate the landscape:
- Kachin Independence Organization (KIO/KIA): The KIA now controls some of the most valuable rare earth mines. While the group is less aligned with Beijing politically, it remains economically dependent on cross-border Chinese trade, relying on imports of food, fuel, and medicine.
- New Democratic Army-Kachin (NDA-K): Historically seen as pro-China, the NDA-K and its successors once managed mining concessions with Beijing’s blessing. However, their displacement by the KIA has reshuffled the balance of power.
Despite shifts in control, Chinese companies continue to secure rare earth supply chains by striking secret deals with whichever group holds the territory. These arrangements often involve lump-sum payments or concession rights, ensuring Beijing uninterrupted access to critical minerals.
This dynamic highlights the uneasy marriage between insurgent politics, China’s resource strategy, and global demand for rare earths used in EVs, wind turbines, and electronics. The question remains: who truly benefits—the militants, China, or the world’s clean energy transition?
6. China’s Strategic Leverage: Deals Beyond Diplomacy
China has built a rare earth monopoly not only through refining capacity but also by mastering a dual-track strategy in Myanmar. Unlike India or the U.S., Beijing operates on two fronts—formal diplomacy and secret insurgent deals—ensuring an uninterrupted flow of critical minerals.
- Diplomatic Channel: China maintains strong ties with the junta government in Naypyidaw, offering political backing, infrastructure investment, and trade support. This gives Beijing legitimacy and influence at the state level.
- Insurgent Deals: At the same time, Chinese companies strike quiet agreements with militant groups in Kachin state. These arrangements grant mining rights in exchange for lump-sum payments, allowing Beijing to bypass central control and secure rare earth supplies even in conflict zones.
This two-pronged approach makes China uniquely flexible. If official channels stall due to sanctions or instability, insurgent partnerships keep the supply chain flowing. As a result, Beijing strengthens its grip on the global rare earth market, leaving competitors like the U.S. and India struggling to catch up.
By engaging both governments and rebels, China not only secures minerals for its clean energy transition but also wields rare earths as a strategic geopolitical tool.
7. Environmental and Social Fallout: Myanmar’s Sacrifice Zone
The global push for clean energy—from electric vehicles to wind turbines—comes with a hidden cost. In Myanmar’s Kachin state, unregulated rare earth mining has created what UK scholars call a “Green Energy Sacrifice Zone.” Behind the promise of sustainability lies a devastating environmental and human toll that local communities are forced to bear.
1. Deforestation on a Massive Scale
Rare earth extraction in Kachin has led to widespread deforestation, stripping mountainsides of protective forest cover. Once-thriving ecosystems are now barren landscapes, making the region more vulnerable to landslides, soil erosion, and climate instability. Forests that supported biodiversity and sustained local livelihoods are vanishing at alarming rates.
2. Toxic Runoff Polluting Water and Farmland
Mining processes release toxic runoff, including acids and heavy metals, into rivers and streams. These contaminated waters flow into farmland, poisoning crops and reducing agricultural productivity. Families who once relied on clean water sources are now forced to depend on unsafe supplies, leading to health risks such as skin diseases, respiratory issues, and long-term illnesses.
3. Displacement of Indigenous Communities
Kachin’s indigenous populations are often caught between militant control and mining expansion. Entire villages have been displaced as mining concessions take over ancestral lands. For many, displacement means losing not only their homes but also cultural heritage, traditions, and sacred sites tied to their identity. Communities that once thrived on farming and forestry now face uncertainty and poverty.
4. Loss of Fragile Biodiversity
Myanmar’s northern borderlands are home to fragile ecosystems with unique flora and fauna. Rare earth mining has disrupted these habitats, causing a loss of biodiversity that may never be reversed. Species extinction, declining fish stocks, and damaged wetlands illustrate how the environmental fallout extends far beyond mining pits.
Global Witness Findings
According to Global Witness (2022, 2024), China has outsourced much of its rare earth extraction to Myanmar at “terrible cost to the environment and local communities.” These reports call the damage catastrophic, arguing that it undermines the ethical foundation of global clean energy supply chains.
Myanmar’s Kachin region highlights the paradox of the green energy transition: while the world reduces carbon emissions, vulnerable communities pay the price. Unless stricter environmental safeguards, transparency, and accountability are enforced, clean technology will continue to rest on an unsustainable and unjust foundation.
8. India, the U.S., and the Struggle to Compete
As the rare earth race intensifies, India and the United States face enormous challenges in breaking China’s near-monopoly. Both nations recognize that rare earth elements (REEs) are critical for electric vehicles, wind turbines, defense systems, and advanced electronics, but accessing them on a large scale remains a steep uphill climb.
India’s Rare Earth Ambitions
India has expressed strong interest in sourcing rare earths from Kachin Independence Army (KIA)-controlled mines in northern Myanmar. According to Reuters (Sept 2025), the Ministry of Mines has already requested samples for evaluation, signaling New Delhi’s intent to diversify away from Chinese dependence.
However, major obstacles stand in the way:
- Geographic barriers: The mines sit right on the Myanmar-China border, making transportation into India extremely difficult.
- Chinese dominance: China already controls most of the infrastructure and trade routes in the region, leaving little room for rivals.
- Security concerns: Deals with insurgent groups pose risks of instability and international scrutiny.
Despite these hurdles, India continues to explore partnerships, pilot projects, and technology-sharing agreements to reduce its reliance on Beijing.
The U.S. and Allied Efforts
The United States, along with allies such as Japan and Australia, has taken a different path. Instead of depending on unstable borderlands, Washington is investing heavily in alternative rare earth sources and recycling technologies. Some key efforts include:
- Australia’s rare earth mines: Expanding production to meet Western demand.
- Greenland exploration: Unlocking new reserves in the Arctic.
- Recycling initiatives: Recovering REEs from discarded electronics and industrial waste.
Yet, these projects remain years behind China’s entrenched position. Beijing not only controls mining but also refining capacity, which is the true bottleneck in global supply.
The Geopolitical Struggle
For both India and the U.S., the challenge is not just about minerals—it’s about strategic independence. Rare earths underpin clean energy, advanced defense systems, and the future of global manufacturing. Without a reliable supply, competing with China becomes far more difficult.
In short:
- India faces logistical nightmares in Myanmar.
- The U.S. bets on long-term alternative sources.
- China continues to dominate both mining and refining.
Unless India and the U.S. accelerate innovation, collaboration, and investment, China’s grip on the rare earth race will remain unshaken.
9. Global Witness and ISP Reports: Data and Analysis
When it comes to understanding Myanmar’s rare earth mining boom and China’s dominant position, independent reports play a crucial role. Among the most cited are those by the Institute for Strategy and Policy (ISP) Myanmar, Global Witness, and a group of academics who have studied the country’s borderlands in depth. Together, their findings paint a clear picture of how instability at the local level fuels global dependency on China for rare earth elements.
Key Findings from Major Reports
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ISP Myanmar (2024):
The Chiang Mai–based think tank documented that more than 240 new rare earth mining sites were established after Myanmar’s 2021 coup. This explosive growth has been concentrated in Kachin state, especially in conflict-prone regions like Chipwi and Pangwa. ISP highlights how political instability provided militant groups and Chinese companies with a rare opportunity to expand operations unchecked. -
Global Witness (2022, 2024):
The UK-based watchdog revealed how China outsourced much of its rare earth extraction to Myanmar, avoiding stricter environmental laws at home. Their reports underline devastating impacts: rivers poisoned by toxic chemicals, farmlands rendered infertile, and indigenous communities displaced from ancestral lands. Global Witness describes these borderlands as bearing “the terrible cost of the world’s green transition.” -
Academic Research (Meehan, Sadan, Lawn, 2023):
Scholars Patrick Meehan, Mandy Sadan, and Dan Seng Lawn went further by conceptualizing Myanmar’s borderlands as a “sacrifice zone” for clean energy. Their research shows how marginalized communities, with little political power, are forced to shoulder the environmental burden so that wealthier nations can meet climate goals.
Why These Reports Matter Globally
- They expose the hidden costs of clean energy supply chains.
- They show how local conflicts and weak governance translate into global reliance on China.
- They provide evidence that current mining practices are unsustainable, both socially and environmentally.
These findings demonstrate that while China dominates the rare earth market, its success relies heavily on Myanmar’s unstable borderlands. For policymakers, investors, and environmental advocates, the lesson is clear: without transparent supply chains and responsible sourcing, the clean energy transition risks being built on exploitation.
ISP, Global Witness, and academic research converge on one reality—Myanmar’s instability is a pillar of China’s rare earth dominance, and the world must grapple with the ethical consequences of this dependency.
10. Implications for Global Geopolitics
China’s reliance on secret deals with Myanmar’s militants to secure rare earths is not just a resource story—it is a strategic play that shapes the global balance of power. Rare earths are the backbone of clean energy, defense systems, and digital technologies. Whoever controls the supply controls the future. Beijing understands this well, and its actions in Myanmar highlight a deliberate geopolitical strategy.
1. Economic Leverage Over the West
China’s dominance in rare earths gives it immense economic leverage over Western industries. From electric vehicles and smartphones to wind turbines and military technologies, rare earths are indispensable. By keeping control of supply chains, China ensures that Western companies remain dependent on Chinese imports. This dependence creates vulnerability—especially when trade tensions flare. For example, Beijing has previously hinted at restricting exports during disputes, sending shockwaves through global markets.
2. Diplomatic Bargaining Power in Trade Wars
Rare earths have become a diplomatic weapon. By controlling both domestic production and imports from Myanmar, China can use access as a bargaining chip in trade negotiations. In an era where U.S.-China tensions are intensifying, Beijing’s ability to influence clean energy supply chains strengthens its hand. This power allows China to push back against sanctions, negotiate better trade terms, and maintain its position as the world’s technological hub.
3. Regional Influence Through Militant Networks
China’s strategy goes beyond diplomacy—it extends to the control of militant supply chains in Myanmar. By striking secret deals with insurgent groups in Kachin state, China not only secures mineral access but also entrenches its influence in Southeast Asia. This dual-track approach—working with both the official junta and armed groups—creates a unique form of leverage that other powers, such as India and the U.S., find hard to counter.
4. The Challenge for India and the U.S.
For India and the United States, Myanmar is both an opportunity and a trap. Rare earth deposits could reduce their dependence on China, but logistics and Chinese dominance at the border make extraction nearly impossible without Beijing’s approval. India’s recent attempts to source samples show ambition, yet the geopolitical terrain remains stacked in China’s favor.
11. China’s Green Energy Transition vs. Myanmar’s Costs
China is often celebrated as a global leader in the green energy transition, driving the world’s production of electric vehicles, wind turbines, and solar technologies. But behind this clean energy boom lies a hidden cost that few outside the region discuss. Myanmar’s Kachin borderlands have quietly become a sacrifice zone for rare earth mining, where militant-controlled operations supply the minerals that power China’s clean tech ambitions.
For local communities, the reality is grim. Forests are stripped bare, rivers are poisoned by toxic runoff, and indigenous families are displaced from ancestral lands. While China enjoys the economic and diplomatic benefits of dominating the rare earth market, Myanmar shoulders the environmental destruction and social upheaval.
This imbalance raises a fundamental ethical question: Can a sustainable future be built on unsustainable extraction? If green energy relies on dirty mining practices, the transition risks becoming another form of exploitation rather than a genuine solution to climate change.
For policymakers and consumers alike, acknowledging Myanmar’s hidden role in the rare earth supply chain is vital. True sustainability requires not only clean technologies but also clean, fair, and transparent sourcing of the minerals that make them possible.
12. Conclusion: Can the Rare Earth Race Be Cleaned Up?
China’s dominance in the rare earth race, cemented by secret deals with Myanmar’s militants, highlights a troubling paradox: clean technologies depend on dirty supply chains. Unless global powers diversify supply sources, improve recycling technologies, and enforce stricter environmental governance, the race for rare earths will remain shadowed by exploitation and conflict.
The future of sustainable technology must include sustainable mining practices — or risk trading one crisis for another.
13. Frequently Asked Questions (FAQ)
Q1: Why are rare earths so important?
They are vital for electronics, EVs, wind turbines, and defense technologies.
Q2: Why does China dominate the rare earth market?
Because of its refining capacity, investment in extraction, and control over Myanmar’s supply chains.
Q3: How are militants involved in rare earth mining?
Insurgent groups in Myanmar’s Kachin state control mining areas and sell access to Chinese companies.
Q4: What is the environmental cost of rare earth mining in Myanmar?
It destroys forests, pollutes water sources, and displaces indigenous communities.
Q5: Can India or the U.S. compete with China?
They are trying, but logistical, political, and environmental hurdles make it difficult in the short term.
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