Heavy rare earths supply chain risks

The document argues that as China tightened regulations on domestic heavy rare earth mining, production shifted to Myanmar, specifically Kachin Special Region 1. This illicit industry is controlled by armed militias and Chinese interests, leading to severe environmental degradation, human rights abuses, and labor violations. Because China controls the vast majority of global processing, these minerals enter the supply chains of major international companies producing electric vehicles and wind turbines. The report recommends that companies and governments implement strict due diligence and import restrictions to prevent the green transition from fueling harms in Myanmar.

• Rare earth mining in Myanmar is illegal under national law and is controlled by a network of Myanmar-registered businesses that serve as fronts for Chinese beneficial owners, overseen by warlord Zakhung Ting Ying and his militias.
• The mining industry in Myanmar is linked to serious human rights abuses, including the intimidation and threatening of local communities who oppose the mines, and the potential funding of military abuses against civilians.
• Mining operations use in-situ leaching, which causes devastating environmental damage, including the contamination of watercourses and the poisoning of livestock and biodiversity in the Kachin region.
• Labor risks at Myanmar mining sites include a lack of protective equipment, insufficient information on chemicals, landslides resulting in deaths, and the use of child labor.
• China maintains a near-monopoly on the processing of heavy rare earths, with five state-owned companies controlling the industry; these companies, such as China Southern Rare Earth, source significant raw materials from Myanmar.
• Heavy rare earths from Myanmar likely enter the global supply chain through permanent magnet manufacturers like JL Mag, which supplies major automotive and wind turbine companies including Tesla, Volkswagen, and Siemens Gamesa.

APA

Global Witness (2022). Heavy rare earths supply chain risks. https://globalwitness.org/documents/126/Heavy_rare_earths_supply_chain_risks_EN_-_August_2022.pdf

Chicago

Global Witness. Heavy rare earths supply chain risks. 2022. https://globalwitness.org/documents/126/Heavy_rare_earths_supply_chain_risks_EN_-_August_2022.pdf.

Wikipedia

{{cite report |author=Global Witness |title=Heavy rare earths supply chain risks |date=August 2022 |url=https://globalwitness.org/documents/126/Heavy_rare_earths_supply_chain_risks_EN_-_August_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalwitness2022heavy, author = {{Global Witness}}, title = {{Heavy rare earths supply chain risks}}, institution = {Global Witness}, year = {2022}, month = aug, url = {https://globalwitness.org/documents/126/Heavy_rare_earths_supply_chain_risks_EN_-_August_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }