Bangkok: The government has confirmed that it will not provide benefits to the United States regarding rare earths. It emphasized that the joint development, exploration, and processing of these materials are not legally binding. It supports electric vehicles and clean energy, and does not provide benefits to the United States unilaterally. Ekniti revealed that this will be used as leverage in tariff negotiations with the United States.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance, Ekniti Nitithanpraphas, stated that the Cabinet acknowledged the rare earths MOU between Thailand and the United States after the Prime Minister signed a Memorandum of Understanding (MOU) on rare earths with the United States during the ASEAN Summit in Malaysia on October 26, 2025. This MOU is a mutual understanding, not a legal one, as follows: 1. To develop and diversify the critical mineral supply chain; 2. To seek knowledge and technology from the United States, promote investment in rare earths, and promote the exploration, processing, refining, recycling, and maintenance industries, encompassing the entire process from exploration to recycling.
Promoting investment in value-added creation and extraction for processing is also a key component of the agreement. The MOU aims to bring rare minerals to market efficiently and safely, developing them throughout the supply chain. Both countries will exchange knowledge and technological expertise. Officials will hold meetings to exchange information, such as licensing, simplifying procedures, and setting mineral prices, as they are in high demand on the global market. Both countries will base prices on market mechanisms and fair trade. All agreements are aimed at developing the entire supply chain for rare minerals. Thailand could also sign MOUs with other countries, as this is crucial, as Thailand continues to support new industries.
Mr. Thanakorn Wangboonkhongchana, Minister of Industry, stated that Thailand has previously lacked rare earth mines due to a lack of commercially viable resources. This MOU will enhance cooperation in rare earth development, supporting the electric vehicle and clean energy industries. This will benefit the creation of a rare earth industry ecosystem and create new opportunities for Thailand to benefit. Under this MOU, entrepreneurs must comply with Thai laws regarding environmental protection.
Mr. Pakorn Nilpraphun, Secretary General of the Council of State, clarified that this MOU is a participant agreement, meaning the parties cooperate on one issue and are non-binding. The agreement adheres to WTO principles of equality, allowing exploration rights between each other, in accordance with each country's legal principles. It is not a written contract, and represents cooperation in the development of rare earth minerals. The Cabinet also expressed similar concerns. The Cabinet also discussed this issue at the special Cabinet meeting on October 23rd.
Many relevant agencies have expressed concern about this matter. Everything must be done in accordance with Thai law. When investing in the country, it does not specifically benefit the United States. Thailand must strictly monitor this matter in order to become a member of the OECD. Thailand's mineral laws must allow for free and fair bidding. Thailand takes care of U.S. investors without any handicaps. This is a normal relationship. This matter has already been passed by a special Cabinet meeting. Today, the Cabinet is being informed.