Thailand's new agreement with the USA: Dangerous rare earths in focus!

Thailand's new agreement with the USA: Dangerous rare earths in focus!

On October 27, 2025, Thai Prime Minister Anutin Charnvirakul and US President Donald Trump signed a memorandum of understanding (MOU) to cooperate in the development of the supply chain for critical minerals such as rare earths. This agreement is intended to strengthen ties between Thailand and the US and is considered strategically important for future industrial development in the Indo-Pacific region. But not everyone joins in cheering.

MP Phattharaphong Leelapat from Chiang Mai casts a critical eye on the MOU. He expressed concerns that Thailand would be disadvantaged by this agreement. In his opinion, what is particularly worrying is that the contract does not address environmentally friendly mining practices for rare earths. This is a legitimate concern given the serious water pollution problems facing northern Thailand. In an exciting context, Phattharaphong highlights that the Thai mining authority does not have the necessary expertise on rare earths and calls for a halt to new mining projects during the interim government.

Environmental concerns and illegal activities

The MOU gives the US broad rights to analyze rare earths in Thailand and prioritizes US investments without adequate consideration of environmental interests. This is where another aspect comes into play: illegal mining of rare earths in Myanmar is already having a devastating environmental impact on Thai waters. Satellite images show striking environmental damage and health problems in neighboring communities are alarming. Respiratory illnesses and heavy metal accumulation, particularly in children, are just some of the impacts attributed to unregulated mining practices.

While the Thai government has identified the legitimate import of critical minerals from Myanmar, it remains unclear how these resources are processed and exported. Ethnic groups on the Thai-Myanmar border are key players in this supply chain, and their influence could only grow.

According to Dr. Sibskul Kijjanukorn of Mae Fah Luang University, the MOU also includes other critical minerals. Potential U.S. geopolitical interests in expanding its influence over resources in Myanmar also raise questions and could put Thailand in an even more precarious position. The environmental and health scientist Dr. Sonti Kochawat calls for a rethink as rare earth mining has significant environmental impacts, including air and water pollution.

A risky business

Overall, the MOU highlights several significant goals, such as improving standards and governance and creating an open market for rare earths. Practical cooperation will focus on seven areas, including technology transfer, security measures and promoting trade and investment. While the Thai government wants to focus on value creation within the country, the reality is that Thailand currently has no commercially potential rare ores from its own reserves and relies heavily on processing imported raw materials.

Given the worrying environmental damage caused by illegal activities in Myanmar and the uncertainties in Thailand's political landscape, there is a real risk that the MOU could create more problems than solutions. Observers and environmentalists are therefore calling on the Thai government to not only look at economic benefits, but also to introduce rigorous controls for the environment and the rights of local communities.

The situation remains tense and the Thai government's upcoming decisions will be crucial to the direction of this new partnership with the US and to protecting the region's environment. Transborder News reports on developments during Bangkok Biz News and Thailand Tip address the environmental situation and the two sides of the coin when it comes to mining opportunities in Thailand.