U.S. Weighs Myanmar Rare Earth Strategy Amid Rivalry With China

The Trump administration is exploring proposals to secure Myanmar’s rare earth minerals, aiming to reduce U.S. dependence on China, which controls nearly 90% of global rare earth processing. Discussions remain preliminary but could mark a major shift in U.S. policy toward Myanmar, long sanctioned for human rights abuses, including the 2021 military coup.

Myanmar’s Kachin State holds some of the world’s richest heavy rare earth deposits, vital for fighter jets and advanced weaponry. Most mines are under the control of the Kachin Independence Army (KIA), an ethnic rebel group. Proposals under review include negotiating directly with the KIA or brokering peace talks between the rebels and the junta to facilitate U.S. access.

Key ideas pitched to Washington involve easing tariffs, reducing sanctions, appointing a special envoy, and partnering with India through the Quad alliance (U.S., India, Japan, Australia) to process Myanmar’s minerals. However, logistical hurdles are immense: the mines lie in remote, mountainous regions near China’s border, and any transport routes risk Chinese interference.

U.S. officials have held indirect talks with the KIA in recent months and sought intelligence on Myanmar’s rare earth industry following the rebels’ capture of the Chipwe-Pangwa mining belt. Advocates argue the KIA seeks alternatives to China’s dominance, presenting an opportunity for Washington to reshape regional supply chains.

Despite these discussions, no policy shift is confirmed. Experts warn the U.S. would face significant challenges in building new supply routes and infrastructure. The junta has expressed willingness to engage, recently praising Trump and signaling openness to negotiations, though Washington remains cautious about deeper involvement in Myanmar’s ongoing civil conflict.

This rare earth strategy highlights escalating U.S.-China competition for critical minerals crucial to defense and clean energy technologies.