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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.

Global Witness reports that heavy rare earth mining has exploded in Myanmar's Kachin Special Region 1, driven by China's need to offshore its polluting mining industry. The process, primarily in-situ leaching, causes severe environmental degradation, including water poisoning and deforestation, while funding militias affiliated with Myanmar's military regime. These minerals, specifically dysprosium and terbium, are critical for permanent magnets used in electric vehicles and wind turbines, linking global green energy goals to human rights abuses and ecological collapse in Myanmar.

Global Witness reports that illegal heavy rare earth mining in Myanmar's Kachin Special Region 1 is surging to meet global demand for electric vehicles and wind turbines. The process, driven by Chinese investment and controlled by militias linked to the Myanmar military, causes severe environmental damage, including water poisoning and deforestation. These minerals are primarily exported to Chinese state-owned enterprises, which then supply global manufacturers of permanent magnets.

Global Witness reports a surge in unregulated heavy rare earth element (HREE) mining in Myanmar's Kachin State, with exports to China rising from 19,500 tonnes in 2021 to 41,700 tonnes in 2023. The report details devastating environmental damage caused by in-situ leaching, including poisoned watercourses and severe health issues for workers. These minerals are vital for permanent magnets used in EVs and wind turbines, linking global brands like Tesla and Volkswagen to a supply chain dominated by Chinese state-owned firms and Myanmar-based militias. The report argues that the trade finances conflict and calls for strict supply chain due diligence and import restrictions on Myanmar-sourced HREE.