Thailand: Tensions after a rare earth agreement with the United States

An agreement on rare earths between Thailand and the United States is sparking controversy, amid geopolitical issues and rivalry with China.

A new memorandum of understanding on critical minerals and rare earths, signed between Thai Prime Minister Anutin Charnvirakul and US President Donald Trump at the 47th ASEAN summit in Malaysia, has sparked debate in Thailand.

See also: The Thailand-US trade agreement carries major risks

Critics warn of geopolitical risks, environmental damage, and unequal conditions that favor Washington.

This unprecedented agreement marks a new step in the American strategy to diversify the global supply of critical minerals.

The US embassy defends the agreement

President Donald Trump and Thai Prime Minister Anutin Charnvirakul exchange a document during a signing ceremony on the sidelines of the ASEAN summit in Kuala Lumpur, Malaysia, on Sunday, October 26, 2025. Photo: AP/Mark Schiefelbein

The U.S. Embassy in Bangkok issued a statement on October 30 entitled "Decoding the Critical Minerals Memorandum of Understanding: Why U.S.-Thailand Cooperation on Critical Minerals Matters."

It aims to defend the text signed in Kuala Lumpur by Anutin Charnvirakul and Donald Trump.

She states that the memorandum of understanding aims to strengthen the resilience of supply chains and encourage investment in processing industries, not to create a binding legal framework.

According to the embassy, ​​the agreement does not infringe upon the national sovereignty or laws of either country, and is based on long-standing cooperation between allies.

The text notably provides for exchanges of information on projects related to critical minerals, the creation of joint ventures between American and Thai companies and the sharing of technical expertise to promote responsible mining development.

Washington stresses that this initiative must promote secure and diversified supply chains, essential for the production of electric vehicles, renewable energy and advanced technologies.

The embassy concludes that this partnership will enable Thailand to strengthen its competitiveness in the strategic minerals sector while contributing to fairer and more sustainable trade.

Opposition MPs demand answers

Thai Parliament. Photo: Thai PBS World

At the same time, opposition lawmakers from the Pheu Thai Party and the People's Party filed an urgent motion to debate the agreement.

Sarasnant Arnannopporn, chairman of the House Foreign Affairs Committee, said that Prime Minister Anutin and the Foreign Minister needed to clarify the terms of the agreement, calling it a "major issue with long-term implications."

Pheu Thai MP Jittipoj Viriyaroj criticized the government for signing the memorandum of understanding without public or parliamentary consultation.

He warned that the agreement gave the United States preferential access to future mineral exploration and could strain relations with China, which dominates 70% of global rare earth mining and 90% of refining.

Phatthrapong Lilaphat, a People's Party MP, said the government lacked understanding of rare earth issues.

He stressed that the memorandum of understanding omitted essential environmental safeguards while allowing the United States "to analyze the extent of the areas and the coordinates of mineral sources in Thailand."

He added that such clauses could disadvantage Thailand and allow Washington to exert greater control over minerals transiting through the country.

"We made a serious mistake," said Phatthrapong.

"Other countries negotiated better terms, but our government accepted disadvantageous conditions from the outset."

The mineral landscape of Thailand

Rare earths. Photo: The Nation Thailand

Thailand's Department of Mineral Resources lists more than 40 types of minerals throughout the country, with rock salt accounting for about 60% of total deposits, concentrated in the northeast.

Approximately 19% of the country's territory contains mineral resources, and studies are underway to identify other critical mineral reserves.

Thailand became one of the world's leading producers of rare earths in 2024, with production reaching nearly 13,000 metric tons, a 261% increase compared to 2023 and 13 times more than in 2018, according to the US Geological Survey.

See: Thailand: the new Asian rare earth powerhouse, 6th in the world

Despite this sharp increase, the domestic rare earth industry remains largely opaque.

Thailand continues to import most of its rare earths from China for use in magnetic components for electric vehicles and electronic devices.

Environmental concerns

Rare earth mining in the Kachin region of Myanmar

Environmental expert Sonthi Kotchawat, of the Environmental Academics Association, warned that rare earth mining carries serious ecological risks.

He stated that the extraction of these elements, while vital to modern technology, requires enormous amounts of energy, water and chemicals, and produces hazardous waste that may contain radioactive thorium and uranium.

Sonthi warned that rare earth mining could contaminate soil and water, release toxic dust, destroy forests and create long-term radioactive waste.

This echoed the environmental problems observed in Burma affecting Thai rivers.

See: China's rush for rare earths in Burma is poisoning Thailand

Geopolitical context

Influence of China and the United States in the world. Photo: The Nation Thailand

Dr. Supavud Saicheua, chairman of the National Council for Economic and Social Development, said that China controls 44 million tons of the world's 90 million ton rare earth reserves and processes about 90% of global production.

He pointed out that Donald Trump's recent Asian tour was aimed at concluding similar agreements with Japan, Malaysia, Thailand, Vietnam and Cambodia, as Washington sought to counter Chinese dominance in the sector.

"Rare earths are at the heart of technologies ranging from artificial intelligence to electric vehicles, but they also consume enormous amounts of energy and water," Supavud said.

"While this 'technology of hope' stimulates innovation, it also risks exacerbating inequalities and creating new environmental and social challenges.

See also:

Thailand: Towards a historic trade agreement with the United States

Thailand – Cambodia: the border remains closed, trade plummets by 99.9%

Thailand–Cambodia: Trump celebrates peace between the two neighboring countries

Source: Khaosod English , Thai PBS World