Illegal Mining of rare earth metals, driven by demand from China for terbium and dysprosium used in electric vehicle production, has surged in northern Myanmar's Kachin state. The number of unsanctioned mining operations has increased since the military takeover in February 2021, reaching almost $773 million worth of exports to China in the first six months of 2023. Paramilitary militias, known as phithusit, have engaged in mining due to a lack of income sources. Chinese nationals, believed to have entered the country illegally, work at over 200 mining sites in the area. Armed groups, including the military, have profited from exporting metals to China.

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