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rare earth supply chain: How one tiny Myanmar town controls the globe’s rare earth supply and is holding the world hostage – the real story

In the northern hills of Myanmar, Bhamo, which hosts only 166,000 people, may seem like a small town, but according to a report, almost half of the heavy rare worlds of the world, such as electric cars and wind turbines.

Civil war that can disrupt houses around the world

Since December, the Kachin Independence Army (KIA), an ethnic militia, is violently fighting for the control of Bhamo, a civil war that began after the 2021 coup of the army, as Myanmar has reported by Reuters. According to the report, the town is 100 kilometers away from the Chinese border and is a strategically vital Garrison town. The seizure of Bhamo, according to the Reuters report, would give KIA control of the primary rare land mining area, which had shaken China and caused supply chain disorders.

China’s critical role in rare soil processing

As it is reported by Reuters, heavy rare soils are usually sent to China to convert them into magnets that strengthen electronic vehicles and wind turbines, as China is almost monopoly on the processing of minerals.
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Beijing Ultimatum

Reuters reportedly threatened to stop buying mined minerals in the Kia -controlled area unless Milis tries to seize the full control of Bhamo.


A KIA official told Reuters that China demanded China in May, and a KIA commander said that Beijing was represented by the officials of the Ministry of Foreign Affairs. He uses China in invented that the ongoing struggle in the region is rarely exported from Myanmar and that Myanmar is now dazzling. He wrote Reuters in his report. Chinese Foreign Ministry Reuters are not aware of the characteristics of the negotiations with KIA, but early cease -fire and peace talks between the Myanmar army and the Kachin army, as in the common interests of China and Myanmar, “he said.

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The KIA official said that if Beijing stopped his efforts to seize Bhamo, as the militias reported by the Reuters, the KIA announced that it offers a larger cross -border trade with controlled regions. “And if we do not accept, they would prevent export from Kachin, including rare land minerals,” he said.

David Mathieson, an independent Myanmar -oriented analyst drew attention to the fact that Beijing did not want to solve the wider civil war, but as quoted in the Reuters report, “China’s pressure is a more general approach to calm the conflict.”

Conflict disrupts mining and exports

The ongoing conflict in Bhamo began immediately after Kia’s control of the main rare earth zone in Kachin last October, and since it was taken over, the KIA increased the taxes on the miners and sent the prices of the second brush, as reported by Reuters.

FAQ

Who is fighting with Bhamo?
According to the Reuters report, the Kachin army is fighting the military junta for the control of the region.

What happens if he follows the Chinese threat?
Global supply chains can be shaken, the prices of rare worlds may increase, and producers can struggle to obtain the materials they need according to the Reuters report.

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