India Charts Rare Earth Revival to Break China’s Grip on Critical Minerals

Image Source: Times of India

India is drafting new guidelines to incentivize domestic production of rare earth minerals and magnets, aiming to reduce its overwhelming dependence on Chinese imports. The move comes in response to China’s recent export restrictions on seven rare earth elements and finished magnets, which have disrupted global supply chains.

Key Developments:

The Ministries of Heavy Industries and Mines are jointly working on a scheme to boost indigenous production of rare earths and magnets.
The initiative will include both private players and public sector undertakings, ensuring broad participation across the industrial spectrum.
India imported over 80% of its 540 tonnes of magnets from China last fiscal, highlighting the urgency of building a resilient supply chain.

Strategic Objectives:

The draft framework will encourage enduse disclosures and client declarations to ensure ethical sourcing and prevent reexport to defensesensitive regions.
Rare earths like samarium, gadolinium, terbium, dysprosium, and lutetium are vital for electric motors, smartphones, braking systems, and missile technology.
India is also exploring partnerships with Australia to secure earlystage rare earth blocks and diversify sourcing.

Global Context:

China controls over 90% of the world’s rare earth processing capacity, making India’s push for selfreliance a strategic imperative.
The proposed guidelines aim to foster innovation, reduce geopolitical risk, and support sectors like telecom, EVs, and defense.

Sources: Economic Times, YourStory, NewsBytes, Rediff Moneynews, Devdiscourse