India eyes Myanmar’s rare earth reserves to reduce reliance on China

India is intensifying efforts to source critical rare earth minerals from northern Myanmar as it seeks to diversify supply chains and reduce its dependence on China, according to a report by Myanmar-based publication Mizzima.

New Delhi is pursuing several bilateral arrangements for procuring rare earths from Myanmar and has increased high-level diplomatic engagement on the issue, the report said.

The two countries discussed expanding cooperation in critical minerals, trade, security and connectivity during talks held in June 2026 between Prime Minister Narendra Modi and Myanmar President Min Aung Hlaing in New Delhi. The discussions drew on the longstanding historical, cultural and people-to-people ties between the countries.

In July, the Indian Ambassador to Myanmar said collaboration on rare earths had received attention at the highest levels. The engagement could pave the way for wider cooperation in mining and minerals through technical exchanges, commercial partnerships and capacity-building initiatives, the report added.

Myanmar has recorded a sharp increase in rare earth production and has emerged as the world’s third-largest producer, according to the report. As Beijing tightens controls over critical mineral exports, India increasingly views Myanmar’s deposits as a strategically important alternative. Bilateral engagement in the mining sector has consequently gained momentum since 2024.

However, extracting and transporting the minerals remains difficult. Many of the deposits are located in remote, mountainous and landlocked parts of northern Myanmar, where transport and mining infrastructure remains inadequate.

Several mineral-rich areas are also controlled by ethnic armed organisations, including the Kachin Independence Army, which is engaged in an armed conflict with Myanmar’s military. Continuing instability could complicate access, investment and logistical operations.

The report called on India to deepen its engagement with the Myanmar authorities while strengthening commercial, technical and logistical cooperation to support the proposed supply arrangements.

India’s pursuit of overseas mineral partnerships forms part of its National Critical Mineral Mission, which aims to secure materials essential for the clean-energy transition and national security. Rare earths and other critical minerals are required for solar photovoltaic cells, wind-turbine magnets, electric-vehicle batteries and advanced defence systems.

With IANS inputs