Highlights

• India seeks to leverage its 6.9 million metric tons of rare earth reserves.
• India is exploring the potential Myanmar corridor to break China's rare earth monopoly.
• Strategic opportunities include:
  • Developing processing bases
  • Partnering with non-state actors
  • Aligning with Western powers seeking supply chain diversification
• Significant obstacles remain, including:
  • Environmental challenges
  • Geopolitical risks
  • Potential Chinese interference in regional mineral trade

As China continues to tighten its grip on global rare earth production—from mining to magnet manufacturing—India sees a rare strategic opening. In a detailed monologue published via YouTube, geopolitical analyst Sree Iyer outlines India’s opportunities and constraints in challenging China’s dominance, especially in light of escalating U.S.–China trade tensions and Myanmar’s evolving role in regional mineral flows.

India possesses an estimated 6.9 million metric tons of rare earth reserves, largely in monazite-rich beach sands along its coasts. Yet its output remains negligible—just 2,900 metric tons in 2024—with over 90% of permanent magnets still imported from China. Despite this imbalance, momentum is building. A new India-Myanmar corridor, powered by the Kaladan Multimodal Transit Project (opens in a new tab), could link India’s northeastern states to Myanmar’s mineral-rich Kachin region—currently responsible for 40% of China’s heavy rare earth imports, including vital elements like dysprosium and terbium.

To seize this moment, India must act boldly. It could explore direct resource partnerships with Myanmar’s non-state actors like the Kachin Independence Organization—entities already operating as de facto regulators in the cross-border rare earth trade. While politically risky, these relationships could secure access and enable India to establish a new processing and refining base along its eastern seaboard, particularly if paired with infrastructure and investment from the U.S., Japan, and Australia.

But the obstacles are formidable. Myanmar’s rare earths come with environmental and geopolitical costs. The refining process is toxic and expensive. Insurgencies across the India–Myanmar border, particularly in Manipur, threaten project viability. And China will not sit idly by—it has historically leveraged proxy militias and political instability to derail such efforts.

Still, Iyer argues, India has a unique advantage: an abundance of labor, democratic accountability, and a growing alignment with Western powers eager to diversify away from China. If India can coordinate its ministries, integrate private sector expertise early, and commit to long-term strategic partnerships in Southeast Asia, it could become a credible alternative to rare earths.

Rare Earth Exchanges Meter™

Overall Bias Rating:  National Interest-Driven Strategic Advocacy