India Eyes Rare Earth Partnerships with Australia, Latin America to Reduce China Dependence

India is proactively exploring partnerships with resource-rich countries such as Australia, Brazil, Chile, and Argentina to mitigate reliance on China for rare earth elements (REEs). These nations are being considered to diversify the sourcing of REEs and associated processed materials vital for advanced sectors like robotics, defence, and battery manufacturing, as per a CNBC-TV18 news report.

With China producing 60% of rare earth magnets and refining 90% of the global supply, India is seeking to de-risk its supply chains amid growing geopolitical and trade uncertainties.

Domestic Policy Measures and Resource Optimisation

The Indian government is taking significant steps to boost domestic availability through the National Critical Minerals Mission (NCMM) and promoting a circular economy. From June onwards, all mining operations in India have been directed to test mineral waste for traces of critical minerals. 

This includes analysing overburden, tailings, and waste from sectors such as petroleum. In addition, the classification of minerals like Barytes, Quartz, Felspar, and Mica has been upgraded from minor to major, ensuring the declaration and extraction of any associated critical minerals that were previously overlooked. Rare earth elements (REE) and processed minerals are vital for heavy industries, robotics, batteries, and military equipment.

High-Level Coordination and Global Outlook

An inter-ministerial meeting led by Union Minister of Coal and Mines G Kishan Reddy discussed strategies to strengthen the REE value chain, from extraction to end-use. Minister for Commerce and Industry, Piyush Goyal, highlighted China’s restriction on REE exports as a global wake-up call. 

India is now considering non-PLI initiatives to support domestic industry and enhance critical mineral production through government-owned entities like Indian Rare Earths (IREL). 

Read more: India Mulls Halt to Rare Earth Exports to Japan to Boost Domestic Conservation!

Conclusion 

India's strategic approach- diversifying international partnerships and enhancing domestic extraction- aims to secure a stable, self-reliant supply of critical minerals vital for its industrial and clean energy future.

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