Southeast Asian nations urged to secure rare earth interests amid growing competition

The Association of Southeast Asian Nations (ASEAN) is facing increased pressure to secure its interests in rare earth elements, as demand continues to grow and gain geopolitical significance. Rare earths are strategically important resources, and countries with proven reserves are keen to benefit from their value.

In particular, several countries in Southeast Asia including Malaysia, Thailand, Myanmar and Indonesia hold significant reserves of rare earths, with China seeking to expand its stake in the region. The Chinese government’s pursuit of rare earth resources in these countries is seen as part of its broader strategy to control the rare earth supply chain and assert its dominance in the industry.

This has raised concerns in some countries, as they fear losing control of their natural resources to foreign powers. A recent announcement by the chief minister of Malaysia’s Kedah state on partnering with China’s Xiamen Tungsten Co Ltd to tap into USD 14 billion worth of rare earth elements has fuelled such concerns, as the foreign power is seen as having the ability to influence regional governments.

Potential environmental impact:

As the competition for rare earths heats up, there is a risk that the environment will be negatively impacted. China is introducing new environmental standards for its rare earth industry, which could constrain supply, but in other countries in Southeast Asia there are no such standards in place. This could lead to increased exploitation of natural resources, which could cause serious harm to the environment.

In Myanmar, for example, the government is engaged in a conflict against opposition groups, with China being a key foreign backer. This has led to warnings that the country is becoming increasingly indebted, which could lead to the exploitation of its natural resources, including 17 types of rare earth elements, resulting in serious environmental consequences as well as strategic implications for the region.

The race for rare earth elements is likely to continue, with China’s increasing control over the industry being seen as a major challenge for other countries in the region. It is important that Southeast Asian nations work together to protect their interests and ensure that these resources are used in a responsible and sustainable way.