India in Talks with Australia for Rare Earth Minerals Post China Curbs

India is currently in dialogue with Australia to explore opportunities in rare earth mineral sourcing, following tightening export regulations by China. These restrictions have caused shortages that are impacting key industries such as automotive and electronics. 

"They (India and Australia) are talking about rare earth, and there are blocks available. So there is an opportunity for India to take an early-stage block and have tie-ups with a few companies," Malini Dutt, Trade and Investment Commissioner, New South Wales Government, Australia, stated, as per news reports.

Growing Interest in Copper Resources

In addition to rare earth elements, India has shown a strong interest in acquiring copper blocks in Australia. Both private enterprises and public sector undertakings (PSUs) are actively exploring investment avenues. 

The existing smelter infrastructure in India and significant investments by companies like Adani are seen as enabling factors for this interest, with abundant copper reserves further fuelling the momentum.

Global Trade Shifts Triggering Resource Strategy

China's imposition of export restrictions on rare earth elements, initially introduced in June last year and made stricter following US tariff hikes under President Donald Trump, has disrupted the global supply chain. 

As a result, countries like India are accelerating efforts to diversify sourcing and reduce dependency on China by forging new partnerships, particularly with mineral-rich nations such as Australia. China currently dominates the global rare earth market, producing 61% of mined rare earths and controlling 92% of the world's output, according to the International Energy Agency.

Read More: India Prepares Rare Earth Magnet Incentives Amid Supply Concerns!

Conclusion 

India’s strategic discussions with Australia mark a significant step towards securing critical mineral supplies, reducing reliance on China, and strengthening its industrial resilience in sectors like automotive, electronics, and energy.

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