Highlights

• Myanmar’s ongoing insurgency has disrupted rare earth element (REE) mining.
• This disruption has caused a 13.7% surge in Chinese REE exports in October.
• China shipped 4,753 metric tons of rare earth minerals in October.
• Total 2024 exports have risen 6.8% compared to the previous year.
• The conflict in Myanmar has suspended REE raw material shipments to China.
• This suspension potentially affects the global supply of critical technology minerals.

Media from both the West and Malaysia report Chinese rare earth element (REE) exports on the rise due to disruptive forces ongoing in Myanmar.  Specifically due to the rebellion and the taking of REE mines and processing in that nation Chinese REE exports surged in October by 13.7%.

Amy Lv (opens in a new tab), and Mei Mei Chu (opens in a new tab) writing for Reuters and picked up by The Star (opens in a new tab) in Malaysia cover this unfolding news.

What’s happening?

Insurgencies have been ongoing in Myanmar since 1948, when the country, then known as Burma, gained independence from the United Kingdom. It has largely been an ethnic conflict, with ethnic armed groups fighting Myanmar's armed forces, the Tatmadaw, for self-determination.

As Rare Earth Exchanges has reported the latest armed group fighting Myanmar's ruling military said it had taken control of a mining hub that is a major supplier of rare earth oxides to China, likely disrupting shipments.

Analysts at consultancy Shanghai Metals Market (opens in a new tab) said in a note on Oct. 28 that shipments of rare earth raw materials from Myanmar to China were suspended due to domestic unrest from the conflict.

What’s the implication?

China shipped 4,753 metric tons of the 17 minerals known as REE, those inputs for a range of products from electric vehicles and wind turbine tech  to defense and more according to data from the General Administration of Customs showed. In September China shipped 4,181 tons in September and 4,291 tons in October 2023.

Overall, to date exports in the first 10 months of 2024 rose 6.8% from the same period a year before to 47,689 tons, the customs data showed.

China's rare earths imports last month fell 12.5% from the year before to 9,471 tons, bringing the total from January to October to 111,960 tons, a year-on-year drop of 22.9%.