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India's Global Push for Rare Earth Mineral Security
Context
In light of China's imposition of strict export controls on rare earth magnets, India has intensified diplomatic outreach to secure alternative sources for rare earth elements (REEs), essential for strategic industries.
Strategic Importance of Rare Earth Elements (REEs):
- Rare earth magnets are critical for several high-end applications in defence, electronics, clean energy, electric vehicles, and renewable technologies. These magnets are made from rare earth oxides such as neodymium, praseodymium, and dysprosium.
India’s Resource Base and Export Status:
- India possesses approximately 23 million tonnes of rare earth oxides. Despite this, India exported only 18 tonnes of REE minerals in the last decade, reflecting a low level of downstream processing capability and dependence on imports for high-end applications.
Geological Survey of India (GSI) Findings:
- GSI has augmented 6 million tonnes of REE ore resources through 34 exploration projects, indicating untapped domestic potential.
India’s Diplomatic Engagements for REE Security:
- India has begun intergovernmental negotiations with countries like Brazil and the Dominican Republic, and initiated multilateral engagements with global institutions such as the International Energy Agency (IEA). Further, MoUs are being pursued with Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, and Côte d’Ivoire, all of which are mineral-rich nations.
Institutional Coordination in India:
- The Ministry of Mines, Ministry of External Affairs, and Department of Atomic Energy are jointly pursuing a multi-pronged strategy involving geological exploration, bilateral diplomacy, and MoU signing for mineral cooperation.
China’s Strategic Leverage and Global Impact:
- China controls a dominant share of rare earth processing and trade, giving it significant geo-economic leverage in strategic supply chains. India’s move can be seen as a counterbalancing initiative aimed at de-risking critical mineral dependencies.
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