Myanmar military steps up fight for rare earth area and border routes - Finance news and analysis from Global Banking & Finance Review
Finance

Myanmar military steps up fight for rare earth area and border routes

Published by Global Banking & Finance Review

Posted on May 25, 2026

4 min read

· Last updated: May 25, 2026

Add as preferred source on Google

Myanmar Military Steps Up Campaign for Rare Earth Regions and Trade Gateways

Renewed Military Offensives and Strategic Objectives

May 25 (Reuters) - Myanmar's military has launched renewed offensives into several border regions, including a frontier area with critical rare earth deposits and other vital trade routes, a month after a new administration took formal control of the war-torn country.

New military chief Ye Win Oo, who took office in March after his long-time predecessor stepped down to become president, is making an aggressive push to reclaim strategic border strongholds from ethnic armies that have gained strength in recent years, spokesmen for rebel groups and analysts told Reuters.

The military's recent offensives have focused on Kachin State, a region rich in heavy rare-earth elements that abuts China, as well as Chin State on the Indian border and a key trade corridor in Karen State, next to Thailand.

Securing Strategic Towns and Routes

At a meeting last week, Ye Win Oo told soldiers that the military had secured Falam town in Chin State and an arterial route between Mandalay and Myitkyina in Kachin State, the state-run Global New Light of Myanmar newspaper reported.

"The military's strategic rationale is that they need to regain control over the primary communication and trade routes in Myanmar," said Myanmar analyst Sai Kyi Zin Soe.

"We can see that the military is trying desperately to recapture towns that host border trade gates."

An official from Myanmar's presidential office, reached via phone, declined to comment.

Reuters could not independently verify the details of military offensives and their early successes across parts of Myanmar, where media access remains restricted.

Political Context and Peace Talks

The offensives come after former junta chief-turned-president Min Aung Hlaing last month asked rebel groups opposed to the military to enter into peace talks within 100 days - a proposal that many ethnic armies immediately rejected.

Myanmar's ongoing conflict was sparked in 2021, when the military staged a coup that ousted the democratically elected civilian government led by Nobel laureate Aung San Suu Kyi.

The takeover triggered a nationwide uprising that escalated into an armed resistance, with multiple ethnic armies and rebel groups pushing the military out of several regions.

Border Gateways and Resource Control

Rare Earth Mining Belts in Kachin State

BORDER GATEWAYS

The military is seeking to drive deeper into northern Kachin State, with an eye to retake mining belts along the Chinese border that produce roughly half of the world's heavy rare earths, which are essential for wind turbines and electric vehicles.

Naw Bu, spokesperson for the Kachin Independence Army that took control of the area in October 2024, said the armed group has prepared their defences, particularly around the Chipwi and Pangwa township areas.

"We will welcome them with the barrels of our guns," he said.

Chin State Offensive and Logistics Routes

Simultaneously, the military has launched an intensified offensive on the western front in Chin State, bordering India, which could disrupt a key cross-border logistics route that supports opposition groups inside Myanmar.

Resistance fighters have undertaken strategic retreats from Falam and Tonzong towns in the state, as the military uses heavy aerial bombings to recover lost territory, said Salai Van, a spokesperson for the Chin National Front.

Impact of Fuel Supplies and Bombing Campaigns

Illicit Iranian deliveries of jet fuel have previously powered an expansive bombing campaign by the Myanmar military, which struck more than 1,000 civilian locations in a 15-month period, Reuters has reported.

The war machine does not yet appear to have been slowed down by fuel shortages triggered by the conflict in Iran, although the country's farmers and other civilians have been hard hit by the global energy crisis.

Control of Karen State Trade Routes

The military has also launched an offensive to control the Myawaddy-Kawkareik highway near Thailand, a key trade route around which fighting has raged on since the Karen National Union ethnic army pushed into the border town of Myawaddy in 2024.

The KNU is among those that Min Aung Hlaing specifically mentioned as part of his attempt to bring opposition groups to the table by July 31.

Rebel Response and Trust Issues

"The military has repeatedly and continuously violated pledges along the path to peace and paid no heed to agreements," said Saw Taw Nee, a spokesperson for the ​KNU.

"Therefore, it goes without saying that there is a complete absence of trust. Whatever they attempt, it is bound to fail."

(Reporting by Reuters Staff; Editing by Devjyot Ghoshal and Lincoln Feast.)

Key Takeaways

  • Kachin State supplies a dominant share of global heavy rare earths (notably terbium and dysprosium), with Myanmar now the world’s largest producer, critically feeding China’s processing capacity. (reetracker.com)
  • The military’s moves to retake Falam and routes in Chin State (bordering India), and key corridors in Kachin State, reflect efforts to regain vital cross-border gateways for trade and logistics. (apnews.com)
  • Control over rare earth mining in Kachin has significant strategic leverage—KIA’s previous capture of these zones disrupted global supplies and spiked prices, illustrating the geopolitical stakes. (rareearthexchanges.com)

References

Frequently Asked Questions

Why is the Myanmar military focusing on rare earth regions?
The military aims to regain control of Kachin State, which contains heavy rare earth deposits vital for industries like wind turbines and electric vehicles.
Which border areas are involved in the renewed offensives?
The offensives focus on Kachin State near China, Chin State on the Indian border, and the key trade corridor in Karen State near Thailand.
What is the impact of the conflict on Myanmar's trade routes?
Fighting has disrupted major border gateways, especially vital trade corridors linking Myanmar with China, India, and Thailand.
Who are the main opposition groups resisting the military?
Ethnic armies such as the Kachin Independence Army, Chin National Front, and Karen National Union have gained ground in recent years.
How has the conflict affected civilians and logistics?
Heavy fighting and aerial bombing have displaced civilians, disrupted logistics, and led to shortages of essential supplies, including jet fuel.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category