Highlights
- Chinese-aligned United Wa State Army controls new rare earth mining sites near the Thai border in Myanmar.
- These mines produce critical elements like dysprosium and terbium for defense, electric vehicles (EVs), and clean energy technologies.
- Beijing strengthens its mineral supply chain strategy amid U.S. trade tensions.
- China extracts materials at significantly lower costs.
In a strategic move deepening China’s grip on the global rare earth supply chain, a Chinese-aligned militia has secured control over new rare earth mining sites in Myanmar’s Shan State, Reuters reports. The UnitedWa State Army (UWSA)— (opens in a new tab)a heavily armed group with long-standingties to Beijing—is now protecting at least two active mining operations near the Thai border.
These mines, operated by Chinese-speaking personnel and equipped with leaching pools for the extraction of heavy rare earth elements, are producing elements such as dysprosium and terbium, which are critical for defense, electric vehicles (EVs), and clean energy systems. Satellite imagery confirms recent construction and chemical extraction activity, indicating that the mines are already yielding material, which is now being trucked toward the Chinese border.
This development follows severe supply disruptions in Myanmar’s northern Kachin region, where conflict halted Chinese mining activity earlier this year. By shifting operations to UWSA-controlled zones in Shan State, China appears to be reinforcing its rare earth security buffer amid renewed trade tensions with the U.S.
The UWSA’s involvement adds a new geopolitical layer: the militia is armed, autonomous, and functions as a Chinese proxy along a critical mineral corridor. Industry analysts suggest Chinese rare earth companies can extract and export materials from Myanmar at a fraction of global costs—up to seven times cheaper—due to looser environmental controls and direct access.
With global demand surging and U.S.-China trade frictions escalating, Beijing’s quiet entrenchment in Shan’s rare earth belt signals long-term planning to insulate itself from Western pressure. Washington, meanwhile, remains heavily reliant on imports and faces mounting pressure to invest in domestic and allied refining infrastructure.
Source: Naw Betty Han, Shoon Naing, Devjyot Ghoshal, Eleanor Whalley, and Napat Wesshasartar. “Exclusive:China-backed militia secures control of new rare earth mines in Myanmar (opens in a new tab),” Reuters, June 12, 2025.
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