DW Investigation Exposes the Human and Environmental Costs Behind Myanmar's Rare Earth Boom-China's Strategic Supply Chain Role Comes Into Focus

Highlights

• China-backed rare earth mining in Myanmar's Kachin State involves:
  • Toxic chemical extraction
  • Environmental degradation
  • Exploitative labor practices
• Chinese rare earth imports from Myanmar doubled from 19,500 tons in 2021 to over 41,000 tons in 2023, despite previous export restrictions
• Local militias, like the Kachin Independence Organization (KIO), now control mining zones, enabling unregulated extraction that funds ongoing conflicts

A recent Deutsche Welle (DW) exposé (opens in a new tab) has cast a stark light on Myanmar’s rise as a critical node in the global rare earth supply chain. The report centers on Kachin State, where Chinese-backed operators use environmentally hazardous in-situ leaching to extract heavy rare earth elements (HREEs) like dysprosium—key inputs for electric vehicles, wind turbines, and high-performance magnets. Toxic chemical use, minimal worker protections, and rampant ecosystem degradation are reported, with testimonies from environmental and human rights activists detailing respiratory illness, contaminated rivers, and exploited labor.

DW links global supply chains—from European auto giants to Chinese magnet producers—back to these informal mining zones, asserting Myanmar has become the world's largest HREE supplier.

China’s Expanding Source

The exposé underscores China’s expanding influence. Rather than increasing domestic mining, China has doubled down on Myanmar’s loosely governed deposits, with rare earth imports from Myanmar jumping from 19,500 tons in 2021 to over 41,000 tons in 2023. Despite a 2018 export ban by Myanmar’s former civilian government, China continued operations post-2021 military coup, and now renegotiates access with the Kachin Independence Organization (KIO), which gained control over key mining zones in 2024.

While the KIO is viewed as more legitimate than junta-aligned militias, DW notes both sides are allowing unregulated extraction that funds conflict, bypasses local communities, and causes irreversible environmental harm.

A Take

While DW takes a clear moral stance, emphasizing Western consumer complicity and calling for “responsibly sourced” supply chains, its reporting is thorough and largely evidence-based. The tone is critical, particularly of Chinese actors and global corporations, though it avoids direct scrutiny of European dependency on these opaque supply chains. Rare Earth Exchanges (REEx) urges Western policymakers and industry leaders to engage transparently with new governance structures like the KIO and to prioritize traceable, ethical sourcing. Myanmar’s rare earth boom is a cautionary tale: strategic minerals should not come at the cost of human suffering or environmental collapse.

Visit the Rare Earth Exchanges Forum (opens in a new tab) to discuss further.