Thailand and the United States have formalized a strategic partnership on rare earth elements, aiming to diversify critical supply chains and reduce reliance on dominant global producers.
The agreement, an MOU signed by Thai Prime Minister Anutin Charnvirakul and then-U.S. President Donald Trump, specifically targets cooperation in exploration and investment. This move underscores Washington’s effort to secure access to these vital materials.
Rare earth elements (REEs) are a group of 17 special metals indispensable for advanced technologies. Their applications span from consumer electronics like smartphones to electric vehicles, wind turbines, and advanced medical devices.
The push for diversified supply chains is a direct response to China’s commanding position in the rare earth market. Beijing currently accounts for approximately 70% of global production.
This market concentration has allowed China significant geopolitical leverage. During past trade disputes with the U.S., China has reportedly disrupted supply chains, highlighting Washington’s vulnerability.
Despite their name, rare earth elements are not inherently scarce in the Earth’s crust. Their “rarity” stems from the complex, high-cost, and environmentally challenging processes required for pure extraction. These processes generate substantial pollution, including wastewater and heavy metals.
Possession of robust extraction and processing capabilities grants significant global influence. Many nations are reluctant to host these polluting facilities.
The 17 elements include Scandium, Yttrium, Lanthanum, and Lutetium, among others. Each plays a critical role in high-tech components, from electric vehicle motors to missile guidance systems.
Some rare earths, once purified, can surpass the value of gold. Lutetium, one of the rarest and most expensive, exemplifies this.
Lutetium’s extreme scarcity is due to its low concentration—about 0.5 parts per million in the Earth’s crust—and its scattered, non-accumulating form. It exists in minute quantities, typically less than 0.003%, as a byproduct of other rare earth processing.
Extracting pure Lutetium involves highly complex and energy-intensive chemical separation processes, often requiring thousands of solvent extraction rounds. This also produces significant chemical waste.
The value of high-purity Lutetium is substantial. Lutetium Oxide (99.99% purity), a crucial industrial precursor, can fetch around $1,000 per kilogram. Pure Lutetium metal (99.9%+ purity) is even pricier, with recent European distributor prices at approximately 2,799 euros per kilogram, equating to about $3,000.
Lutetium’s high demand comes from its specialized applications in precision technologies. It is essential for cancer detection machines, advanced lasers, and nuclear reactors. Notably, Lutetium-177 is a radioactive isotope used directly in prostate cancer treatment, further driving its demand in the medical sector.
Thailand, as the world’s sixth-largest rare earth producer with roughly 3% of global output, is a strategic partner for the U.S. This partnership aims to bolster supply chain security.
The rare earth MOU is more than a diplomatic gesture. It represents a significant strategic maneuver to secure the elements powering future technologies.
For Thailand, the agreement signals its emerging role as a key player in the global high-tech and clean energy industries.