China has intensified controls on rare earth exports, leading to global shortages and underscoring reliance on its supply chains. Interestingly, while it is the leading producer of rare earths, China has become increasingly dependent on imports from Myanmar, which accounted for about 57% of its total rare earth imports in 2022. The export of rare earths from Myanmar to China surged from 2018, peaking at nearly 42,000 metric tons by 2023, with a high concentration of valuable heavy rare earth elements like dysprosium and terbium, crucial for high-tech applications.
Myanmar’s deposits, particularly ionic adsorption clay (IAC), are advantageous due to their high heavy rare earth content, and their extraction has shifted to Myanmar as environmental regulations in China tightened. This shift has led to Chinese investments in Myanmar’s IAC mining operations, creating a supply chain where extraction occurs in Myanmar, but processing remains primarily in China.
However, this reliance presents risks. Following Myanmar’s 2021 military coup, control over territories producing much of the world’s heavy rare earths has become unstable, exacerbated by opposition from armed groups like the Kachin Independence Army (KIA). The KIA’s control over key production sites has caused supply disruptions, elevating prices and threatening China’s access to critical materials.
In light of these vulnerabilities, China is pursuing diversification strategies by exploring IAC deposits in nearby countries such as Malaysia and Laos, where stricter environmental standards may pose additional challenges. Ultimately, China’s rare earth strategy highlights the precarious balance between resource extraction and environmental responsibilities while reflecting broader geopolitical dynamics.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
