Citizens Point

In 2021, the South Asian country of Myanmar faced a military coup. The civilian government led by democracy champion and Nobel laureate Aung San Suu Kyi was overthrown by the military (Junta). Since then, the country has witnessed numerous conflicts, especially along its northern provinces. Militias opposing the junta regime have captured vast parts of the country and aim to topple the Junta.

A lack of image of in-situ surface leaching in Kachin, Myanmar is regretted. The above image is being used by many media houses. The Chinese facility resembles the mining process in Kachin, Myanmar.

Unknown to many, the country has been at the forefront of a significant technological revolution. The green technology adoption in automobiles — the Electric Vehicle (EV) revolution — would not be possible without the mines of Myanmar. But most of this mining is still illegal!

In the last four years of instability, the Southeast Asian country has come to contribute a little more than half of the global supply of two significant heavy rare earth elements (REEs) used in EVs. Dysprosium and terbium, both essential for magnet technology in clean energy systems, have become Myanmar’s most globally significant exports. These are used in the manufacturing of high-performance permanent magnets that are essential for EVs as well as wind turbines.

Chinese companies have a monopoly over surface-based extraction of these REEs and contribute over 80 percent of global requirements. This is because South China and the adjoining northern Myanmar territory are rich in REEs, and the Chinese have been extracting them for over fifty years. Their expertise, along with heavy-handed diplomacy, are two key factors behind China’s access to Myanmar’s northern areas. In addition, Chinese have a long presence in the Northern Myanmar region due to jade mining which is sought after in China.

The in-situ leaching process used for extracting rare earth elements like Dysprosium and Terbium in Myanmar involves injecting a leaching solution such as ammonium sulfate or similar compounds into upper layers of mountainous terrain through wells. The solution percolates through the ore body and dissolves the rare earth elements as it moves downward. This leached solution is collected in the production wells located downhill. This method allows for extraction without traditional mining, minimizing surface disruption but posing environmental risks due to contamination from heavy metals.

Under the military regime, the export of REEs to China has grown fivefold. In fact, Myanmar is now the largest exporter of rare earth minerals to China. Official Chinese customs data revealed that over 90 percent of Myanmar’s REE exports in 2023 were absorbed by Chinese processors based in Yunnan and Guangdong provinces.

The extent of mining in Myanmar is concentrated in Kachin province, with around 357 sites in Chipwi township and approximately 2,500 sites in Momauk township. From these areas, the minerals are transported by road to Longchuan and Ruili (Xinjiang) cities on the Chinese side. It is important to note that most of the REE mining sites are illegal and operate without any license. Over the past year, anti-junta militia groups led by the Kachin Independence Army (KIA) have mostly overthrown military control over these mining sites.

While researching this topic, a single functional website of any local Kachin mining company could not be found. Chinese companies involved in REE exploitation in Kachin did not mention explicitly about their operations in Myanmar.

Although, it has not impeded China’s ability to mine and export REEs from the region. In 2023, the volume of REE exports stood at slightly over 41,000 tonnes, more than double the exports in 2021. This includes a growing proportion of high-purity oxide compounds that are processed immediately after crossing the Myanmar-China border.

There is another critical issue that raises proverbial doubts over the idea of “green” and “sustainable” EVs. The mining undertaken for the extraction of REEs in Myanmar is extremely polluting. The in-situ leaching method, considered cost-effective and low-labor, has devastating consequences on the local environment. The ground is drilled and sprayed with chemicals that absorb REEs. Then, water is filled into pits on the uphill side, allowing minerals to leach into the flowing water. This water is then collected in ponds on the downhill side, where chemical treatment is used to extract the REEs.

While this method does not involve major displacement of earth, it leads to many harmful consequences. The use of extremely hazardous chemicals in the leaching process has led to groundwater poisoning, illness, and even death among the local population. Overuse of water has caused the drying up of natural water sources such as lakes and rivers, extinction of aquatic life, and widespread contamination of the soil. Independent Researchers have found continuing leaching of toxic substances, such as arsenic and cadmium, from mines that have been discontinued a decade back.

In fact, attempts to expand mining into new townships have been met with growing public resistance. Villagers have staged protests and some local armed groups have imposed temporary bans on new mining permits. The illegal nature of these mining camps results in rampant worker exploitation, as labor is cheap in this region and operators rarely follow safety protocols. Among available global reports, few have managed to cover the area on the ground, and many sources have admitted their witnesses were afraid of harsh consequences. The future looks bleak as both the Junta regime and the anti-Junta militias look to cash-in the global demand for Rare Earth minerals, especially for EV manufacturing.

Another aspect that can be used to analyze the region is cash flow. The Kachin area has been historically mired by human rights abuses by criminal syndicates and a strongman rule under Zakhung Ting Ting. After anti-junta militia overran the area, Zakhung reportedly fled to China. Although the EV sector has boomed globally, the cash flow in this part of Myanmar has remained weak. There are instances of increased demand, township expansion, and shifting job profiles; but these are not very prominent. Timber and agricultural products have remained prominent for the greater Northern Myanmar region near Kachin. The advent of modern facilities is not only missing, there is also growing anxiety over rising drug abuse, prostitution, and decreasing crop yields.

Satellite images have shown expanding mining activity, but economic stagnation in surrounding villages suggests that most revenue either exits the country or flows into illicit and military-linked channels.In conclusion, the EV boom and the wider transition to clean energy have revealed an uncomfortable truth: the world’s rush toward sustainability often rests on exploitative and environmentally destructive supply chains.

Myanmar’s rare earth mining industry has become a silent cornerstone of the global green transition — but one that thrives on political instability, environmental degradation and violation of human rights principles. This makes such mining as equally unsustainable and even more harmful, as it comes out of sheer human exploitation.

The question now is whether international buyers and technology companies will take steps to trace, regulate, and clean up the upstream supply chains that feed their products, or continue to look the other way. A global policy for good business practices on EV supply chains is much desirable at the earliest.