Thailand and USA: Historic MOU for rare earths signed!

Thailand and USA: Historic MOU for rare earths signed!

Thailand has made a significant step in the international economy. On October 26, 2025, a Memorandum of Understanding (MOU) between Thailand and the United States was signed in Kuala Lumpur, covering cooperation in the exploration, production and utilization of rare earths. The Manager Online reports that this MOU is seen not only as an opportunity to strengthen the Thai economy, but also as a key to promoting high-tech industries.

But the euphoria is clouded by some concerns. Critics warn about the possible environmental consequences of rare earth mining as well as geopolitical tensions between the USA and China. China controls around 70% of global rare earth production and therefore has a dominant role in processing. The Thai government hopes to become part of the global semiconductor supply chain, while pointing out that Thailand initially has no experience in mining these valuable minerals and could potentially find itself embroiled in a geopolitical conflict.

Opportunities and risks of the MOU

The MOU not only provides the US with access to investment in technologies for exploring, mining and processing rare earths, but also ensures American companies the first right to purchase these minerals from Thailand. Experts stress that the deal could position Thailand as a key player in the global supply chain, potentially leading to higher rare earth revenues and more foreign investment. Loud Thansettakij This could be a golden opportunity for Thailand, but clear strategic planning for mining and regulation is also required to protect the environment and local communities.

Also problematic is the fact that the MOU is not legally binding. This means Thailand can unilaterally terminate it should it be deemed detrimental. It could also be that Thailand is being used as a transit country for rare earths, which come mainly from China, increasing concerns about the country's geopolitical neutrality. The political pressure to engage in intellectual exchange while protecting one's own resources cannot be underestimated.

Focus on environmental and community protection

The Thai government now sees a duty to enact laws to regulate the environment and protect communities in order to make rare earth mining sustainable. It is not just a question of economic growth, but also of responsibility towards nature and local people. Critics are calling for more transparency and citizen participation in the implementation of this agreement, as many fear that local communities could suffer the consequences of mining.

At a time when the U.S. is trying to reduce its dependence on Chinese imports, Thailand may face a crucial choice: charting a course toward a profitable future while fighting for responsible environmental behavior. Whether Thailand can find this balance will become clear in the coming months.