U.S. strategic document seeks to acquire rare earths from Myanmar; Myanmar military junta urges Washington to expand investment

The U.S. State Department recently released a strategic document aimed at expanding U.S. influence and seeking to acquire Myanmar's rare earth resources. However, Myanmar wants the United States to be more active, with the military-led government urging the United States to re-engage and quickly expand investment in rare earth mines.

Reuters reported on the 10th that after months of secret talks with Myanmar officials, the U.S. State Department issued a strategy document last week proposing a plan to expand U.S. influence and seek to acquire Myanmar’s rare earth minerals. The new strategy includes assisting U.S. companies to "conclude at least three major business or investment transactions of more than $5 million each."

But the Myanmar government hopes that the United States will invest more. DCI Group, a lobbying company in Washington, issued a communication on behalf of Myanmar’s Ministry of Information on the 9th, stating that “due to Myanmar’s mineral resources and the United States’ declared intention to compete with China, this scale is not large.” It also stated that “China has spent several years building its position in Myanmar’s resource industry, and its companies and middlemen have advantages that are not easy to replace.”

The communication calls on the United States to "consider Myanmar a priority for critical minerals policy, not just a diplomatic challenge." Minerals are a natural entry point for deepening U.S.-Myanmar relations and can connect Myanmar's economic potential with U.S. national security and supply chain priorities.

In response to a Reuters inquiry, a U.S. State Department spokesperson said that Washington is encouraging Myanmar to make progress on several key priorities, including "improving the local operating environment for U.S. companies and working toward establishing a peace process that truly promotes the country's stability."

Myanmar, which fell into civil war after a military coup in 2021, is one of the world's main sources of heavy rare earths. Most of them are exported to China and made into magnets used in high-tech products such as electric vehicles and wind turbines. China produces about 90% of the world's rare earth magnets and relies on Myanmar for some of its raw materials. It has recently tightened government control over the rare earth industry.

The main rare earth producing area in Kachin state in northern Myanmar is controlled by the Kachin Independence Army, an armed group that has long been at war with the Myanmar military and has the support of Beijing. The United States imposed sanctions on Myanmar after its coup in 2021. It was not until direct talks with Myanmar in September this year that the policy toward Myanmar changed.