US holds secret Myanmar talks as rare earth minerals at stake

The United States has held another round of secret talks with Myanmar’s military-backed rulers, signalling renewed engagement with a country whose strategic importance is growing amid competition over critical minerals and China’s dominance of rare-earth supply chains.According to Reuters, citing three people familiar with the matter, the latest meeting took place in Tokyo last week, marking the second round of talks between the two sides in a month. The US delegation was led by Assistant Secretary of State for Intelligence and Research Michael Vance and reportedly included more than a dozen officials.The meeting followed a mid-September visit by Vance to Naypyitaw, Myanmar’s capital, where he met military-backed President Min Aung Hlaing.

The discussions included efforts to secure the release of an American businessman and combat online scam networks targeting US citizens.Washington has also explored access to Myanmar’s heavy rare-earth deposits, although no agreement on mineral supplies has been confirmed.The renewed diplomatic outreach comes as Myanmar continues to grapple with a civil war that erupted after the military overthrew the elected government in February 2021.

The military-backed administration, which consolidated its position through an election criticised by opponents and rights groups, faces resistance from pro-democracy forces and ethnic armed organisations that control significant areas of the country.The conflict has caused widespread displacement and left large parts of Myanmar outside the central government's effective control.Rare earth minerals at stakeMyanmar's rare-earth deposits are emerging as a strategic prize as the US reopens talks with the country's military-backed rulers, seeking alternatives to China-dominated supply chains.

However, armed groups controlling key mining areas and Myanmar's ongoing civil war could complicate access.Myanmar's Kachin State is a major source of heavy rare earths, including dysprosium and terbium, used in high-performance magnets for electric vehicles and wind turbines.Reuters reported in July that nearly half the world's heavy rare-earth supply comes from mines in the state, with much of the output shipped to China for processing.China's dominance extends beyond mining to processing and refining, making it difficult for other countries to establish alternative supply chains. A 2025 Stimson Center analysis found that Myanmar lacks the capacity to process rare earths to the purity required for advanced manufacturing.The Kachin Independence Army (KIA) controls key mining areas near the Chinese border, including the Chipwe-Pangwa belt, which it seized in October 2024.

Myanmar's military has since sought to regain strategic border areas, adding to uncertainty surrounding mining operations and supply routes.India is also exploring Myanmar's rare-earth resources. Indian Ambassador Abhay Thakur said in July that two Indian delegations had visited the country to explore critical minerals, in December 2024 and February 2026.Reuters previously reported that India's ministry of mines had asked state-owned IREL and private firm Midwest Advanced Materials to explore obtaining rare-earth samples from mines controlled by the KIA.