The Trump administration’s recent push to secure Myanmar’s rare earth minerals reveals a deep misunderstanding of the country’s complex political landscape. Control of critical mining operations by the Kachin Independence Army (KIA) presents a no-win situation for U.S. policy. Despite lifting sanctions on Myanmar junta allies in July 2025 and considering direct engagement with ethnic rebel groups, American officials are quickly learning that sourcing rare earths outside of China involves navigating a tangled web of armed factions, environmental devastation, and Chinese economic dominance, making quick solutions unfeasible.

International experts have sharply criticized the administration’s approach. Tom Andrews, the UN Special Rapporteur on human rights in Myanmar, called the rollback of sanctions “shocking,” warning it marks “a major step backward for international efforts to save lives by restricting the murderous junta’s access to weapons.” Swedish Myanmar expert Bertil Lintner called U.S. hopes of accessing the mines “totally crazy,” pointing out that “if they want to transport the rare earths from these mines, which are all on the Chinese border, to India, there is only one road and the Chinese would definitely intervene and block it.” Even industry insiders acknowledge the strategic impasse. Nabeel Mancheri of the Global Rare Earth Industry Association bluntly stated that Chinese magnet manufacturers claiming they do not use Myanmar materials are lying: “You don’t have any other option.”

The administration’s willingness to engage directly with Myanmar’s brutal military junta and to ease sanctions shows a troubling prioritization of resource access over human rights and democratic values. This approach fundamentally misjudges both the nature of Myanmar’s conflict and the realities of rare earth extraction. The junta does not control the mines; ethnic armed groups do. These groups lack the capacity to process the minerals themselves and rely entirely on Chinese refineries to turn raw materials into usable products. By easing pressure on the junta even as it continues bombing civilians and dismantling democracy, the U.S. is effectively rewarding authoritarianism without gaining any real strategic advantage. As Bloomberg reports, the policy also overlooks the severe environmental damage caused by Myanmar’s mining operations, where toxic chemicals have polluted the surrounding land and rendered local water supplies “entirely unsuitable for human consumption.”

Myanmar’s rare earth industry only emerged after China tightened its environmental regulations in the early 2010s, pushing mining operations across the border into Kachin State where regulations are virtually nonexistent. Under the control of local warlord Zahkung Ting Ying, Chinese companies set up hundreds of mining sites using in-situ leaching, an extraction method that involves pumping millions of liters of chemical solutions into the ground, causing widespread ecological harm. The 2021 military coup, which toppled Aung San Suu Kyi’s democratically elected government, further destabilized the region. In October 2024, the KIA took control of nearly all rare earth mining operations. The group now oversees the extraction of dysprosium and terbium, two elements essential for electric vehicles, wind turbines, and military technologies. However, all raw materials must still be shipped to China for processing before they enter global supply chains that feed major manufacturers like Ford, Tesla, Hyundai, and Volkswagen.

Instead of pursuing doomed arrangements with either the junta or ethnic rebels, the U.S. should abandon its flawed rare earth strategy and adopt long-term policies that align with American values. This means reversing the recent sanctions relief granted to junta allies and expanding support for Myanmar’s pro-democracy movement, particularly the National Unity Government. The administration should make serious investments in domestic rare earth processing and collaborate with stable democratic partners to diversify global supply chains and reduce dependency on China. Most critically, any future engagement with Myanmar must prioritize the restoration of democratic governance and the protection of human rights over short-sighted resource grabs. The current strategy not only fails to meet its stated objectives but also actively undermines regional stability while legitimizing one of the world’s most repressive military regimes. True energy security cannot be built on deals with dictators. It demands long-term investment in ethical, sustainable alternatives that reflect America’s commitment to democracy.