Thailand and USA: Secret constraints in the MOU on rare earths!

Thailand and USA: Secret constraints in the MOU on rare earths!

On November 2, 2025, Thailand signed a Memorandum of Understanding (MOU) with the US on rare earths during the ASEAN Summit in Malaysia. This agreement aims to improve cooperation in critical minerals and diversify supply chains for materials essential to electric vehicles, smartphones and defense technologies. Government officials, including Prime Minister Anutin Charnvirakul, emphasize that this MOU is not legally binding and that Thailand retains control over its raw materials. However, critics are concerned that Thailand could potentially be disadvantaged by this agreement and fear negative effects on relations with China, the country's largest trading partner.

The MOU covers several areas of cooperation, including the exchange of technical knowledge and the improvement of regulatory practices in mining. The aim is to establish Thailand as a center for rare earth processing in the ASEAN region. Environmental concerns are at the forefront. Concern about possible environmental pollution, such as that seen in Myanmar, is also present. Legal Affairs Committee Secretary Pakorn Nilprapunt underlines that the country should not just sell raw materials but increase their value through technology and processing.

Challenges and opportunities

As the sixth largest producer of rare earths in the world, Thailand faces the challenge of developing skilled workers and infrastructure for sustainable industrial development. The country currently produces around 13,000 tonnes annually, an increase of 261% in 2024. Given this, the government sees potential, but is also mindful of the concerns of citizens who are calling for a strategic analysis of environmental impacts and stricter regulations.

The geopolitical tensions between the USA and China could put Thailand in a pinch. Critics warn of possible economic retaliation from China, which could further complicate the fate of the MOU. So what Thailand needs above all is a good knack for dealing with these complex international relationships. To date, there are no commercially viable rare earth mines in the country, and the agreement is primarily aimed at information exchange and future cooperation.

A non-binding agreement

Although the MOU was signed by prominent politicians, including US President Donald Trump, Thai officials emphasize the non-binding nature of the agreement. Trade Minister Suphajee Suthumpun makes it clear that Thailand can continue to cooperate with both the USA and China. However, it remains to be seen how the implementation of the agreement will develop.

In an increasingly competitive rare earths landscape, Thailand is becoming increasingly important as a potential player. With a clear strategy and a focus on environmental protection, the country may not only be able to strengthen its industrial base, but also take a pioneering role in the sustainable use of natural resources. The MOU is viewed by many stakeholders as a rare opportunity that presents both opportunities and challenges, and it will be exciting to see how the situation develops.

Bangkok Biz News reports that the government wants to promote the development of the mining industry, while The Pattaya News which highlights geopolitical risks and environmental concerns. In addition, Cambridge Dictionary interesting definitions and synonyms for “rare” are offered, helping readers better understand why rare earths are so important for the future.