How India Plans to Reduce Dependence on China for Rare Earth Elements

India’s Rare Earth Strategy: Securing the Future of Critical Minerals
Rare earth elements (REEs) are crucial for modern technology, powering everything from electric vehicles (EVs) to military equipment. However, China’s dominance—producing 60% of global supply and processing 90%—has raised concerns worldwide. To counter this, India is diversifying its sourcing and ramping up domestic production.

Why Rare Earth Elements Matter
Essential for EV batteries, wind turbines, smartphones, and defense systems.
Used in permanent magnets (neodymium, dysprosium), which are vital for high-tech industries.
China’s export restrictions have pushed nations, including India, to seek alternatives.

India’s Plan to Reduce Dependence on China
India holds 6.9 million tonnes of rare earth reserves—the third-largest globally after China and Brazil. To capitalize on this, the government is:
Exploring partnerships with Australia, Argentina, Brazil, and Chile for raw materials.
Boosting domestic production under the National Critical Minerals Mission (NCMM).
Promoting recycling through a circular economy model to minimize waste.
Encouraging EV adoption by securing lithium supplies from Chile for its 2030 green mobility goals.

Recent Government Actions
Inter-ministerial meetings were held to discuss self-reliance in rare earth magnets.
IREL (India’s state-run miner) suspended a rare earth export deal with Japan, signaling a shift towards domestic utilization.

Challenges & Opportunities
Africa’s strong trade ties with China make sourcing difficult.
India’s vast beach sand mineral deposits (1/3rd of global reserves) offer untapped potential.
Investments in processing tech are needed to compete with China’s refining capabilities.

Sample Questions & Answers
1. Why is India looking for alternative rare earth suppliers?
Answer: India is reducing reliance on China, which controls 60% of global rare earth production, to avoid supply chain risks.
2. Which countries is India considering for rare earth supplies?
Answer: Australia, Argentina, Brazil, and Chile are key sourcing destinations.
3. What is the National Critical Minerals Mission (NCMM)?
Answer: A government initiative to boost domestic production and processing of rare earth elements.
4. How does rare earth availability impact India’s EV goals?
Answer: Rare earths like neodymium are used in EV batteries and motors, making supply crucial for India’s 2030 EV targets.
5. Why did India suspend rare earth exports to Japan?
Answer: To prioritize domestic use and strengthen self-reliance in rare earth processing.