PM Rejects Claims of U.S. Favoritism in Rare Earths Deal

BANGKOK, Oct 29 (TNA) - Thailand's Prime Minister Anutin Charnvirakul on Tuesday rejected claims that a recent Memorandum of Understanding (MOU) on rare earth elements with the United States unfairly favors Washington. 

He stressed the deal is non-binding, mutual, and can be canceled, affirming it is not a concession agreement.

Signed during the ASEAN Summit, the MOU facilitates joint study, exploration, and cooperation should Thailand's rare earth reserves become viable, leveraging U.S. technology and market access. 

Anutin insisted the move was not underhanded or made under pressure, noting a friendly posture towards the U.S. could positively influence ongoing trade and tariff negotiations.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas in his capacity as the head of the negotiating team clarified the MOU is an agreement of mutual understanding, not legally binding, focused on developing and diversifying the critical mineral supply chain.

Its goals include seeking technology transfer, promoting investment in value-added processing and extraction, and ensuring efficient market access for processed rare earths. 

The agreement confirms both nations will exchange technological expertise and hold discussions on simplifying licensing, streamlining procedures, and basing mineral pricing on fair market mechanisms. 

This is all about developing the entire supply chain, he said, adding that Thailand remains free to enter into similar MOUs with other nations to support emerging industries.

Rare earth elements are vital for modern technology, including electric vehicles (EVs), solar panels, computer chips, and defense systems, making them critical for the global digital and clean energy transition. 

While Thailand is currently ranked the world's sixth-largest producer of rare earth elements—with production reaching over 13,000 metric tons in 2024 and steadily rising—it remains one of China's major rare earth importers. - 819 (TNA)