India Ramps Up Global Alliances To Cut Reliance On China For Critical Minerals

India is intensifying efforts to diversify its critical mineral supply chains, working closely with global partners to reduce dependence on China’s near-monopoly in rare earth elements and strategic materials. The move comes amid rising geopolitical risks and export restrictions from Beijing.

Strategic Measures Underway

- The Trade Ministry is coordinating with resource-rich nations like Australia, Kazakhstan, the US, Chile, and Peru to secure alternative sources of lithium, cobalt, and rare earths  
- India has joined the US-led Minerals Security Partnership and signed bilateral MoUs to expand cooperation in exploration, processing, and recycling of critical minerals  
- Talks with Chile and Peru are part of ongoing Free Trade Agreement negotiations aimed at unlocking access to Latin America’s vast reserves of copper and lithium  
- A Rs 5,000 crore domestic production scheme is being rolled out to boost rare earth magnet manufacturing and incentivise private sector participation  

Domestic Capacity Building

- Indian Rare Earths Ltd has commissioned a permanent magnet plant in Visakhapatnam using indigenous technology  
- Khanij Bidesh India Ltd is exploring joint ventures in Central Asia and Latin America to tap into untapped reserves  
- Amendments to the Mines and Minerals Act are being fast-tracked to enable commercial extraction and attract foreign investment  

Sectoral Impact

- Automotive, electronics, and renewable energy sectors stand to benefit from stable access to critical inputs  
- The initiative supports India’s clean energy transition and strengthens its strategic autonomy in high-tech manufacturing  

Sources: The Diplomat, Times of India, Hindustan Times, PIB India, InsightsonIndia, Economic Times, Moneycontrol, IndBiz.