Myanmar’s Rare Earth: The Hidden Costs Of The Global Green Transition – Analysis

Eurasia Review  |  Htay Su Wai

Myanmar's conflict-affected borderlands have become central to global rare earth supply chains, driven by accelerating demand for renewable energy and electric vehicles. Following the 2021 coup, Myanmar emerged as the world's third-largest rare earth producer, with extraction expanding rapidly in Kachin State. This expansion, largely fueled by China shifting environmentally destructive mining beyond its borders, operates under fragmented governance involving militias, armed actors, and opaque cross-border arrangements.

This displaces severe environmental and human costs onto politically fragile regions, creating zones of ecological sacrifice. Mining methods like in-situ leaching cause toxic wastewater, deforestation, and soil contamination, impacting local communities and transboundary river systems, as seen with arsenic detection in Thailand. The lack of institutional capacity in Myanmar for environmental remediation, estimated to cost billions in China, highlights a critical contradiction in the global green transition. Addressing this requires stronger international cooperation, conflict-sensitive environmental governance, and improved supply chain accountability.

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