Green Mines or Destruction? Uncovering the Paradox of Rare Earth Elements

มูลนิธิต้นไม้สีเขียว
Jun 10
4 min read

The transition to clean energy and advanced technologies in the 21st century, such as electric vehicles, wind turbines and smartphones, has created unprecedented demand for Rare Earth Elements (REEs). These minerals are not only the heart of high-performance permanent magnets, but also a key component of batteries, laser beams and advanced sensors. However, behind the “green” hype of the circular economy lies a frightening “gray cost” that has a damaging impact on nature, communities and international security. This report explores the REEs market landscape, its ecological and social impacts, particularly Myanmar’s role as a major source of HREEs, and solutions to ensure that truly “clean energy” does not end up on environmental waste.

1. Market dynamics and the “green paradox”

The global REEs market is estimated to be worth USD 9–16 billion over the next decade, at a CAGR of 9–10%. This is mainly due to the demand for high-performance materials in EV, wind turbines and advanced electronics, such as neodymium (Nd) in permanent magnets. This phenomenon has become a “green gold rush” that has driven many countries to frantically seek REEs. However, the huge demand is being exploited through common pollutant extraction methods such as acid dust, sulfur dioxide, radioactive waste and wastewater, such as in-situ leaching (ISL) processes that use harsh chemicals such as ammonium sulfate.

“Green conflict” occurs when solutions to the global warming crisis create local environmental crises because the government and private sectors often overlook the ecological and social costs that are difficult to assess. Humans or ecosystems in production areas therefore have to bear the unfair burden of toxic waste and diseases from heavy metals.

2. Myanmar: A “Clean Energy Frontier” Without Standards

Despite China being the leading producer of 80–90% of the world’s REEs, it has chosen Myanmar as its offshore mining hub, extracting heavy rare earths (HREEs) such as dysprosium (Dy) and terbium (Tb). Myanmar is ranked 4th in global mining production (approximately 12,000 tonnes in 2022). Major production is concentrated in Kachin State, bordering Yunnan, with over 370 small- to medium-sized mines and over 2,700 slurry tanks used to store ammonium sulphate for leaching ores, with little to no control measures.

Since the 2021 coup, mining in Kachin State has tripled compared to before. Repeated underground chemical injection has caused acid leaks, heavy metals and radioactive waste to seep deep into underground and surface water, pushing forests clear, eroding soil and causing frequent landslides. More than 35 landslides occurred in 2024, killing dozens of workers, revealing that ISL technology, while claimed to be less disruptive to the surface, actually releases far more pollutants underground.

3. Environmental and health wounds

Chemical contamination of water systems is the worst. Many communities in Kachin State have lost streams, groundwater and drinking water sources due to high levels of arsenic (As), cadmium (Cd) and mercury (Hg). The effects range from gastrointestinal diseases, skin problems and respiratory problems to osteoporosis and cancer. Remediation efforts are taking 50–100 years or may never recover. Small-scale fishing communities have been forced to stop fishing and farmers have lost their crops. Meanwhile, social tensions have flared as mining revenues support both the Myanmar military and ethnic armed groups such as the KIO/A and NDA-K, leading to the so-called “conflict minerals.”

4. Cross-border impacts to Thailand

Pollution from Kachin State flows into Myanmar's major river basins, the Irrawaddy and Kok Rivers, and then to Thailand. In Mueang and Mae Sai districts, Chiang Rai Province, As was detected in the Kok River at 0.026 mg/l (exceeding the standard of 0.01) and Hg at 0.076 mg/l (exceeding the standard of 0.05), causing villagers to not dare to use the river for drinking, bathing, or catching fish, causing gastrointestinal diseases, skin diseases, osteoporosis, as well as sky-high health costs and environmental restoration budgets.

In addition, droughts during the dry season increase the concentration of chemical residues. In the rainy season, toxins spread far into low-lying areas, affecting rice and vegetable production. Ecotourism along the Kok River is also reduced as tourists avoid the area. Bottled water is continuously distributed by local administrative organizations.

5. Supply chain geopolitics

China monopolizes global REE processing plants while relying on Myanmar as a primary source for over 57% of its rare earth imports. When northern Myanmar is hit by unrest or natural disasters such as the 2025 earthquake, Dy₂O₃ prices surged more than 32% in two weeks, leaving the global market vulnerable to changes in these remote mines.

In response, the US has announced a diversification policy, supporting domestic exploration and processing, while the EU has passed the Critical Raw Materials Act, setting a target by 2030 to extract 10% domestically, process 40% and recycle 25% of domestic consumption, with a limit of 65% from a single supplier.

6. Approaches to sustainable sourcing

Distribute sources
- Supporting mining projects in Canada, Australia, Brazil, Chile, Greenland and developing supply chains outside China-Myanmar
Circular Economy
- Increasing the recycling rate of REEs from e-waste, currently only 1%, should develop biomining, electrokinetic, agromining technologies to reuse 30–50%.
International Standards – Check Status
- Implement OECD guidelines covering conflict areas and UNGPs, with a mine-to-downstream mill traceability mechanism and an independent complaints mechanism.
Thai-Myanmar cooperation
- Establish a multilateral committee to monitor transboundary water quality, install automatic measuring stations, link real-time data, and negotiate a Transboundary EIA to mitigate impacts.
Promoting good governance in Myanmar
- The international community supports legal frameworks for EIA, mining registration and enforcement, with penalties for foreign investors who circumvent standards.
Research on clean extraction technology
- Promote R&D in bio-electrochemical-agricultural mining to reduce chemical usage and unlock the potential of post-mining rehabilitation.

Conclusion

If the world continues to hoard REEs for “clean energy” without ethics and social and environmental responsibility, future development will be marked by the pain of voiceless borders and perverted resources. The solution must start with accepting the “gray” cost of REEs and creating a transparent supply chain with international standards and sharing benefits equally among producers, processors and consumers to lead to a truly “green” and sustainable future.

By Naritsakorn Panyasunthon | Green Tree Foundation