'Akaradej' turning the lens on the Thailand–US 'Rare Earth MOU' - Paving the way for Thailand's future industries

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The recent hot topic is the signing of a Memorandum of Understanding (MOU) between the United States and Thailand on Rare Earth Elements (REE) ( (MOU: Memorandum of Understanding between The Government of The United States of America and The Government of The Kingdom of Thailand Concerning Cooperation to Diversify Global Critical Minerals Supply Chains and Promote Investments) amid stricter environmental controls on rare earth mineral exports from China,the world's leading rare earth mineral market. This signing between the United States and Thailand marks a collaborative effort to develop global economic and investment supply chains. Following the announcement of the blockade of access to rare earth mineral resources by the United States, the trade retaliation from both superpowers has led to new US cooperation in Southeast Asia

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The Situation of the Rare Earth Industry in Thailand

SAP NEWS talked with Akaradej Wongpitakroj, House of Representatives member Ratchaburi province and Head of the Committee on Industry .He explained that rare earth minerals found in Thailand include monazite and xenotime, which are located throughout mountain ranges and play crucial functions in the semiconductor sector.Rare earth minerals can be found throughout western Thailand's mountain ranges, including Ratchaburi, Kanchanaburi, Prachuap Khiri Khan, Ranong, Phang Nga, Phuket and Krabi.Although lithium is not classified as a rare earth mineral, it has been discovered in mountain ranges within past tin mines in Thailand over the last 2-3 years of exploration. Thailand does not have commercial rare earth reserves of its own, but rather "Ore Dressing" minerals for export. He stated that Thailand currently does not have any commercial rare earth mining operations. Previous figures only show rare earth exports, which are imported from upstream countries, Ore Dressing materials, and then exported. As such, the mining industry lacks any commercial mining operations.

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Is Thailand Ready to Embrace New Trends in Future Industries?

According to the USGS's Global Rare Earth Production Report, Thailand ranks fifth in the world for rare earth production, with 13,000 metric tons. Akaradej said, this is a large number when compared to the total amount of rare earths produced. As such, it is regarded as an important mineral for the advancement of modern sectors such as clean energy, low-carbon industries, and alternative energy. These necessitate the utilization of rare earths as upstream minerals in the manufacture of high-tech products such as household goods, everyday things, security products, and defense equipment.As a result, rare earths are seen as a new trend in emerging industries.

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The United States Signs MOUs Between Thailand, Malaysia and Japan

The purpose of this MOU is to improve cooperation among participants in the development and expansion of the key mineral supply chain.Akaradej discussed the signing of this agreement by the Thai and US administrations. Thailand isn't the only signatory country. The United States has also signed MOUs with Japan and Malaysia. These MOUs have various details. Thailand emphasizes on education, research, and exploration rather than investing. Japan and Malaysia have a far deeper partnership in education, research and exploration. Thailand has not prioritized this direction. Furthermore, the signing of this MOU by both countries is viewed as a development project for education, technology, and knowledge transfer in exploration and processing, which the United States is required to deliver to Thailand.

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Viewing the MOU from another angle, given that the agreement can be ended at any time.

Akaradej added that if we ignore political bias and properly assess the content of the MOU, Thailand will profit from research and education, which Thailand has not previously prioritized.As a result, the United States has proposed technology and expertise that will lead to future development benefits for Thailand.Furthermore, the MOU can be dissolved at any moment by either party, including the United States.As a result, he sees no commitments that would hurt or endanger Thailand.He feels that the public should be informed of this so that the rare earth minerals initiative can respond to global concerns.

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The public has received no explanation for the signing, which violates good governance regulations.Is it required for parliamentary approval?When it comes to being considered to be lacking good governance, Akaradej remarked that the constitution requires such agreements to be approved by Parliament.During the 25th parliament, Thailand signed FTAs and state-to-state commitments. Collaboration with Australia or the European Union requires parliamentary permission.We must also analyze the specifics to see if the signing of these agreements satisfies the constitutional standards.In some ways, these agreements are simply MOUs with no legal commitments, hence they do not meet constitutional standards.

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The Ministry of Foreign Affairs and the Ministry of Commerce serve as the oversight agencies.As the government whip, I'm concerned about this. Akaradej went on to say that in this situation, the government and several authorities, including the Ministry of Foreign Affairs and/or the Ministry of Commerce, had considered the matter.

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The main issue is a lack of good governance and public information disclosure.Akaradej believes that after the MOU is signed, the government must share information to the public.He acknowledges that the Ministry of Foreign Affairs and the Ministry of Commerce are prepared to share this information so that interested parties may examine it.

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“The literal meaning of the MOU, which is simply wording, is open to several interpretations. Therefore, any critique should be founded on truth, legality, information, and facts.We do not want to appear biased by claiming that we detest the administration or the Prime Minister and believe that everything we do is bad. Therefore, every assertion must be supported by facts. I believe it is critical for the public to consider and understand the information,"Akaradej stated.

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As China tightens its environmental regulations, while the US moves forward with signing agreements with several countries, what message does this send to the global supply chain?

Concerning superpowers such as the United States and China, Akaradej stated that both countries are today superpowers, whether in terms of trade or military strength. As a result, the issue of upstream minerals, which are critical to foreign and advanced industries is going to quickly become a new global trend. He said that the United States has always relied on China as well. By importing minerals from countries with the world's largest mineral reserves in order to build domestic industries and production, the United States increased taxes on these two countries, which China responded against.

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Hence, one of China's responses to the US-China trade war has been limiting rare earth exports. Given these constraints, the United States must strive to find rare earth reserves, which might lead to agreements with Japan, Thailand, and Malaysia, as well as the European Union, to secure reserves for national economic security.However, the United States must continue to seek cooperation in order to address China's retaliatory measures and future uncertainty.

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Expectations for the government 4 months before parliament dissolution

Akaradej added that as Chairman of the Industrial Committee, he understands how important communication is. As therefore, the government must promote understanding and ensure accurate and direct communication with the public. On February 5, 2025, the Industrial Committee met and invited the Director-General of the Department of Primary Industries and Mines, Ministry of Industry, the Department of Mineral Resources, Ministry of Natural Resources and Environment, and other agencies to discuss the issue at hand. The public will be informed on the management and utilization of rare earth minerals in Thailand, as well as information on the current state of rare earth minerals and the MOU.

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Akaradej stated that this committee represents the people. As such, the information provided to us by government organizations for screening as House of Representatives (MPs) and committee chairs will be made available to the public directly.This will boost the government's credibility because the legislative agencies in charge of managing the country have been informed and are examining the benefits and limitations of the MOU, which the public should be aware of.

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At last, he believes that if the people understand the government's true objectives, goodwill, and limitations, they will be able to address any demands from the United States that are presently unknown. This will also include cooperation to promote Thailand's rare earth industry, which will benefit a variety of downstream businesses.As an outcome, in the four months leading up to the dissolution of Parliament, the committee's forum will serve as another channel for the government to give relevant information to the public.

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