Rare earth elements are essential materials used in many modern technologies.
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These metals power smartphones, electric vehicles, wind turbines, and even military equipment. Without these rare materials, industries across the world would face serious trouble.
For years, China has held a tight grip over the global rare earth supply. China controls the production, processing, and distribution of these critical materials. Countries around the world have depended heavily on China to keep their industries running.
But behind this powerful control, China has been quietly depending on a surprising source: Myanmar.
Myanmar, a small country shaken by civil war and political instability, has become a key supplier of rare earths to China. Without Myanmar’s rare earth materials, China’s stronghold on the global supply chain now appears much weaker than many had believed.
Myanmar’s Mines at the Heart of the Storm
In recent years, China began to rely more and more on rare earth materials from Myanmar. Although China is the world’s top rare earth producer, it does not mine everything on its own. A large portion of the heavy mineral elements—especially dysprosium and terbium—have been coming from Myanmar.
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These particular rare earths are extremely valuable. They are harder to find in nature and are crucial for making advanced technology like electric motors, fighter jets, and wind turbines. Myanmar’s soil contains these minerals in special types of clay deposits that are rich in heavy metals.
In fact, more than half of China’s rare earth imports have been coming from Myanmar. This strong dependency has quietly developed over the past several years.
Myanmar’s mines, however, are located in regions that have been deeply affected by war. These areas are controlled by local armed groups and are often the center of violent battles. This makes the supply chain incredibly risky.
When Myanmar’s military lost control over key mining areas, the rare earth supply from Myanmar to China was suddenly at risk. In the early months of 2024, one of the major armed groups seized rare earth mining sites that supplied nearly half of the world’s heavy rare mineral elements.
As soon as this happened, rare earth prices shot up. Supply chains became disrupted, and China’s control over these critical materials was shaken. Myanmar’s war had unexpectedly become a major problem for China’s rare earth empire.
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The rare earth materials from Myanmar are usually shipped to China in raw forms known as rare earth oxides. China then processes these materials and turns them into refined products used by industries worldwide.
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But with Myanmar’s mines caught in the middle of a civil war, this supply chain has become extremely vulnerable.
Reports show that imports of rare earth oxides from Myanmar into China fell sharply after armed groups took control of important mining areas. The drop in supplies made it clear that China’s critical mineral dominance was not as strong as it seemed.
Many countries had long feared their heavy dependence on China’s supply. Now, the world is realizing that China itself depends on the fragile and dangerous situation in Myanmar to maintain its position.
China’s critical mineral power has been built on a supply chain that runs through war-torn regions, unpredictable political landscapes, and unsafe mining practices.
Myanmar’s critical mineral deposits, especially those in the north, are extracted using chemical methods that can harm the environment. These mining practices have led to soil damage, water pollution, and risks to local communities.
To reduce environmental damage, China had earlier cut down on some of its own rare earth mining. As a result, Chinese companies expanded their search for rare earths beyond their borders, heavily increasing operations in Myanmar.
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But this move now seems risky. Myanmar’s civil war is ongoing, and control over mining areas can shift rapidly. Armed groups in Myanmar now see rare earth mines as valuable assets and bargaining chips in the conflict. By holding these mines, they gain significant power over the supply chain.
Some reports suggest that armed groups are now using critical mineral supplies as a tool to pressure China. This could lead to further disruptions and rising prices in the rare earth market.
To address these risks, China has been trying to find other sources of heavy rare earths in nearby countries like Malaysia and Laos. However, mining in these places is more strictly regulated. Environmental rules in these countries are tougher, and mining companies may find it harder to quickly replace the supplies from Myanmar.
China’s decision to cut back on its own domestic critical mineral mining may also have long-term effects. In the past, rare earth mining in southern China left behind serious environmental problems, including toxic water and damaged farmland. These challenges made China cautious about pushing its domestic mines back into full production.
Myanmar’s explosive war has now revealed the deep weaknesses in China’s rare earth empire. What once appeared to be a powerful and stable control over the global supply now looks fragile and uncertain.
The story has shown the world that even the most powerful supply chains can depend on the most unstable corners of the planet. As the battle in Myanmar continues, the future of critical mineral supplies remains on shaky ground.