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India Explores Rare Earth Supplies From Myanmar’s KIA

2025-09-12

India is exploring ways to secure rare earth minerals from Myanmar with the assistance of the rebel group Kachin Independence Army (KIA), Reuters reported. The initiative comes as New Delhi looks for alternatives to China, which dominates the global supply chain of these critical resources.

India’s Ministry of Mines has instructed both state-run and private companies to collect and transport rare earth samples from KIA-controlled mines in northeastern Myanmar. State-owned Indian Rare Earths Limited (IREL) and private firm Midwest Advanced Materials, which received government funding last year for rare earth magnet manufacturing, are among the companies involved. The samples will be tested in Indian laboratories to determine if they contain sufficient heavy rare earths, essential for magnets used in electric vehicles and high-tech equipment.

The Ministry of Mines made this request during an online meeting in July, attended by IREL, Midwest, and at least one other company. Reuters cited a source describing this as an unusual case of India working directly with a non-state armed group. A KIA official confirmed that the group has begun collecting samples for India and has agreed to explore the feasibility of bulk exports.

While rare earths are not scarce in nature, China almost completely controls processing technology. Beijing has tightened export restrictions this year to strengthen its geopolitical influence, particularly amid trade tensions with the US.

Last month, Prime Minister Narendra Modi said he discussed rare earth mining with Myanmar’s junta leader Min Aung Hlaing during a meeting in China, though no official deal was announced.

India is also working to build its own processing capacity. IREL has been seeking partnerships with Japanese and Korean firms to manufacture rare earth magnets commercially.

China has long engaged with the KIA for rare earth supplies, but tensions have grown due to the rebels’ clashes with junta forces in key regions. A spokesperson for China’s Foreign Ministry told Reuters that Beijing was unaware of any possible KIA-India cooperation but stressed that “all relevant parties in northern Myanmar appreciate and thank China for its constructive role in maintaining peace and stability in the region.”

The KIA, founded in 1961, is one of Myanmar’s most influential armed groups. Since the 2021 military coup, the rebels have been a strong force resisting the junta. Last year, they captured the Chipwe-Pangwa mining belt in Kachin state, which supplies most of the world’s heavy rare earths, including dysprosium and terbium.

Although the KIA continues to sell rare earths to China, disagreements have emerged, prompting the group to increase engagement with India. Officials in New Delhi are considering a long-term deal with the KIA to establish a rare earth supply chain. However, transporting large volumes across mountainous terrain could pose a major challenge.

Currently, most minerals are exported to China via existing road networks. IREL has discussed possible arrangements but prefers that private companies handle transport.

Experts warn that even if India secures supplies, it still lacks large-scale processing facilities without Chinese expertise, Reuters noted.

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