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

Image Source : Construction World

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.