Myanmar lobbies US to invest in its rare earths sector, dominated by China
XLB•Myanmar’s military-led government is urging the United States to increase engagement and investment in its rare earths sector. A new US strategy aims to secure at least three commercial or investment deals worth more than $5 million each for US companies.
1. Push for investment
Myanmar’s military-led government is urging the United States to expand engagement and rapidly increase investment in the country’s rare earths mines. The US State Department’s strategy, released last week after months of talks with Myanmar officials, aims to secure at least three commercial or investment deals valued above $5 million each for US companies.
2. China’s role
Myanmar is a major source of heavy rare earths, most of which are exported to China for processing into magnets used in electric vehicles, wind turbines and other high-tech products. China produces about 90% of the world’s rare earth magnets, partly using material from Myanmar. Key production sites in Kachin are controlled by the Kachin Independence Army, a rebel group fighting Myanmar’s military.
3. US engagement
A State Department spokesman said Washington was encouraging Myanmar to improve the operating environment for US businesses and build toward a genuine peace process. The United States froze Myanmar’s assets at the Federal Reserve Bank of New York and imposed sanctions after the 2021 coup, before holding direct talks in September.
