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India Seeks Rare Earth Access Via Myanmar Rebel Group to Challenge China's Dominance

India Seeks Rare Earth Access Via Myanmar Rebel Group to Challenge China's Dominance

India has initiated a plan to gain access to Rare Earth Minerals through the Myanmar-based rebel group, KIA. IREL and private firm Midwest Advanced Materials are preparing to collect and transport samples of these minerals to India. This move is aimed at challenging China's global processing dominance and increasing the production of high-tech equipment and EV magnets.

Rare Earth: India has launched a new strategic plan to access Rare Earth Minerals through the Myanmar-based rebel group, KIA. The Ministry of Mines has instructed IREL and private companies to collect samples from the northeastern regions controlled by KIA and prepare for potential large-scale exports. This strategy is being adopted with the objective of weakening China's global processing grip and boosting the production of magnets essential for electric vehicles, high-tech equipment, and missile manufacturing.

Access to Rare Earth through Myanmar

According to a Reuters report, India is attempting to gain access to Rare Earth Minerals through the Kachin Independence Army (KIA), a rebel group in Myanmar. The Ministry of Mines has directed the state-owned company IREL and the private firm Midwest Advanced Materials to collect samples of Rare Earth from the northeastern areas of Myanmar controlled by KIA and explore possibilities of bringing them to India.

Midwest received government funding last year to produce Rare Earth magnets. In an online meeting held in July, representatives from IREL, Midwest, and another company discussed the ministry's demands. KIA has begun collecting samples for India and has also agreed to potential large-scale supply.

China's Grip and India's Pressure

Rare Earth Minerals are abundant globally, but China holds almost complete control over their processing technology. China has been halting the supply of processed Rare Earths to India and other major countries since this year to exert geopolitical pressure. China is already purchasing Rare Earths from KIA. Experts state that if China can obtain supplies from KIA, there is no reason why India cannot.

India's Challenges

It is not easy for India to bring minerals from Myanmar on a large scale. The terrain is rugged and mountainous. Currently, the minerals are transported via China's road network. IREL wants a private company to handle the transportation.

Currently, India lacks the capacity for large-scale Rare Earth processing. IREL is exploring partnerships with Japanese and Korean companies to commence commercial production of Rare Earth magnets. According to expert Nabil Macheshwari, "Theoretically, India can process these minerals, but it will take time to produce large quantities."

China Under Pressure, KIA Towards India

Prime Minister Narendra Modi also raised the issue of Rare Earth during his meeting with Myanmar Junta Chief Min Aung Hlaing in China on August 31. However, no official deal has been announced. The United States has also shown interest in Rare Earth supply from Myanmar, and proposals for collaboration with India have emerged.

China is also exerting pressure on KIA, as the junta considers it a guarantor of stability. However, KIA, which is in continuous conflict with the junta, is now moving closer to India. Last year, KIA captured the Chipwe-Pangwa mining belt from junta-backed forces. This area is considered a major source of most of the world's heavy Rare Earths, such as dysprosium and terbium.

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