India is exploring a rare-earth supply deal with Myanmar’s Kachin Independence Army (KIA), a powerful rebel group, in a bid to reduce reliance on China’s near-total dominance of the strategic minerals market, four people familiar with the matter told Reuters.
According to the sources, India’s Ministry of Mines asked state-owned IREL and private firm Midwest Advanced Materials to help secure samples from KIA-controlled mines in northeastern Myanmar. The samples are to be tested in Indian laboratories to determine whether they contain sufficient levels of heavy rare earths, such as dysprosium and terbium, used in electric vehicles, wind turbines, and other advanced technologies.
The request, made during an online meeting in July, marks a rare instance of New Delhi engaging with a non-state actor. A KIA official confirmed that the group had begun gathering samples for India’s analysis and was also considering bulk exports if feasible. Neither India’s ministries nor the companies involved responded to Reuters’ requests for comment.
The move comes after Beijing tightened restrictions on rare-earth exports to India and other economies this year, part of its broader strategy to wield geopolitical leverage in its trade disputes with the United States and allies.
Despite being abundant, rare earths are difficult to process, and China controls the technology that converts raw minerals into high-purity magnets essential for modern industry.
Indian Prime Minister Narendra Modi recently acknowledged discussing rare-earth mining with Myanmar junta chief Min Aung Hlaing, though no deal was announced. The junta, which is battling the KIA, did not respond to queries.
Analysts say India’s outreach reflects growing competition with China, which also sources rare earths from the KIA. “If China is liaising with the KIA to secure access to rare earths, why should India be left behind?” said Angshuman Choudhury, a Singapore-based analyst of India-Myanmar relations.
The KIA, formed in 1961 to push for autonomy for the Kachin minority, has grown into one of Myanmar’s strongest armed groups. Since the 2021 coup, it has expanded operations against the junta and last year seized the Chipwe-Pangwa mining belt, a major source of heavy rare earths.
While still supplying China, tensions with Beijing have surfaced as the militia resists pressure to scale back its offensive against junta forces.
India is interested in a longer-term arrangement with the KIA, but officials acknowledge significant logistical challenges. Moving bulk shipments across Myanmar’s mountainous borderlands is difficult, and India lacks industrial-scale facilities to process the minerals without foreign partnerships. IREL has been seeking tie-ups with Japanese and Korean firms to scale up magnet production.
Even if India secures access, experts warn progress will be gradual. “Theoretically, if India gets these materials, they could separate and make useful products,” said Belgium-based rare-earths expert Nabeel Mancheri. “But it would take time to scale this up to produce meaningful quantities for international markets.”
The engagement highlights India’s urgency to diversify rare-earth supplies as it seeks to power its clean-energy transition and reduce vulnerability to China’s economic influence.
Source: Reuters
Written By Rodney Mbua
