India’s Strategic Rare Earth Reset through Self-Reliance: By Patricia Cheryln

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Introduction

At the 17^th BRICS Summit held in Rio de Janeiro, PM Modi warned against the weaponization of rare earth elements by China through his statement, “It is important to ensure that no country uses these resources for its own selfish reasons or as a weapon against others”. His remarks come amid heightened tensions and growing pressure on countries to decouple from China. China now controls 70% of REE mining and 90% of refining and processing, which includes the rare earth magnets used in Electric Vehicles (EVs), wind turbines, and other civilian and military applications. These are vital elements, especially in producing clean energy, aiding the sustainability goals of many countries. The global push towards decarbonization has intensified this urgency, particularly for India, which aims to achieve 50 percent of its energy capacity from non-fossil fuel-based energy resources by 2030 and achieve net-zero carbon emissions by 2070.

Weaponization of rare earth minerals

The critical need for mineral security arose with the escalation of the U.S. - China tariff war in early 2025. As the U.S. threatened China with 104% tariffs, China imposed retaliatory tariffs of 84% on U.S. imports, along with a strategic restriction of the rare earth minerals. This control over production gives Beijing significant leverage over global supply chains, and the world’s dependence on China in this domain remains profound. It also highlights the ability of countries to weaponize their strength through possession or control over critical elements in trade.

The stringent export controls for 17 rare earth elements implemented by China in April 2025 are bound to affect industries such as automotive, defense, and electronics, disrupting global supply chains. This calls for quick action from the Government of India to boost domestic production of rare earth minerals and reduce reliance on China. To recognize India’s capacity for becoming self-reliant, it is important to understand and analyze its rare-earth reserves, production capability, and necessary technology for the processing of rare-earth minerals, along with environmental safety.

India’s outreach to counter dependency on China’s rare earth elements (REEs)

As countries strive to disentangle themselves from China, the economic pressure imposed by Trump in his second term, which began in 2025, adds to the urgency of self-reliance. While India is striving to achieve Atmanirbhar in all facets of its economy, it faces challenges in producing rare earth elements, despite holding substantial reserves of the material, due to limited processing capabilities and a lack of advanced technologies.

Currently, India has identified 6.9 million tonnes of Rare Earth Oxides, standing third compared to China’s 44 million and Brazil’s 21 million tonnes. While India’s reserves constitute roughly about 6% of the world’s REE deposits, its production accounts for only 1% of the global production output. In the meantime, India is pushing to secure partnerships in Africa, South America, and Central America to break the monopoly held by China and reduce vulnerabilities in high-tech supply chains. Following the footsteps of the U.S. and China in turning Africa into a center of competition, India has joined the race by pushing for ties in defense and minerals in Africa.

In Zambia, exploration teams for copper and cobalt deposits have been dispatched to ramp up efforts to secure critical minerals necessary for power generation, electronics, and construction. The Zambian government has agreed to allocate 9000 square km of land to India for a period of up to three years for the exploration of cobalt. If assessed to hold potential, the countries are expected to sign a lease, which may also open the project to participation from private-sector companies.

Previously, in March of 2025, Prime Minister Modi held talks with the government of the Democratic Republic of Congo to sign an initial agreement securing supplies of cobalt and copper. The patterns indicate a steady increase in the imports of copper and cobalt due to the closure of the Vedanta Sterlite copper smelting industry in 2018, amidst protests against environmental pollution. These issues highlight the need for domestic production to be strengthened in an environmentally responsible manner, balancing the demand for critical minerals with sustainable mining practices.

In July 2025, Prime Minister Modi undertook a five-nation tour covering Ghana, Trinidad and Tobago, Argentina, Brazil, and Namibia, focusing on defense, rare earth minerals, and counter-terrorism cooperation. It represents a significant step in India’s broader strategy to secure key critical minerals such as lithium, cobalt, uranium, and rare earth elements.

Prime Minister Modi’s visit to Namibia after 27 years as part of a 5-nation trip in Namibia focused on uranium, marine diamond deposits, and other critical minerals. Namibia offers an opportunity for harnessing critical minerals that could support its EV industry. The country also holds significant potential for developing new mining projects involving cobalt, lithium, and rare earth elements. Additionally, India is seeking to secure uranium supplies from Namibia, which has the third-largest uranium reserve in the world, crucial for its civil-nuclear development.

Another noteworthy part of PM Modi’s 5-nation trip included the rare earth minerals deal struck with Ghana. Both nations acknowledged the concerns posed by China’s monopoly in strategically controlling the export of rare earth and have signed the deal offering entry points for Indian investments in the mineral-rich Ghanaian geological landscape. Similarly, with Trinidad and Tobago, India renewed its MoU, vowing to increase cooperation on rare earths and energy resources to secure a broader range of critical minerals.

In Argentina, India has secured lithium deals as Argentina holds the second-largest lithium reserves in the world, making it a key supplier for India’s battery and electronic necessities. They have strengthened their cooperation by signing a Memorandum of Understanding (MoU) on lithium exploration and mining in February 2025, paving the way for collaboration on exploration and resource development of critical minerals.

Therefore, it is evident that India is not limiting its dependency to one particular country, but rather looking to diversify its partnerships. It has hence launched coordinated efforts across Africa and Latin America to focus on resource allocation, resource security, and technology access. Consequently, India is transitioning from a passive importer to an active upstream investor in the global mineral landscape.

India’s Position in Becoming Self-Reliant in REE

Despite being reserves-sufficient, India faces challenges in bridging the gap between potential and output. As stated above, India contributes only about 1% to global rare earth production. This disparity arises due to several challenges, such as the lack of advanced refining technology, limited private-sector involvement, environmental concerns, and dependence on imports for processing.

Source: The Print

In order to address these concerns, India launched the National Critical Mineral Mission (NCMM) in 2025, aimed at enhancing domestic production, promoting recycling, and securing overseas critical mineral assets. As announced during the setup of NCMM, it will focus on advancing technology, developing a skilled workforce, and creating an effective financing mechanism to support these goals. The timeline to create a globally competitive and resilient mineral critical mineral ecosystem for India is aimed at 2047, in line with the Viksit Bharat initiative of creating a ‘Developed India’. Under this mission, domestic production is prioritized through expanded exploration, offshore mining, regulatory reforms, and private sector incentives. There are also provisions in the proposed plan for the exploration and acquisition of critical minerals from abroad by supporting the public and private sectors by providing subsidies for mining, and for setting up evacuation infrastructure with appropriate finances. Under such initiatives, India’s Khanij Bidesh India Limited (KABIL) has signed an agreement with CAMYEN SE, an enterprise of Catamarca province of Argentina, for lithium exploration and development of five adjacent lithium brine blocks.

India is also a part of the Minerals Security Partnership (MSP), a US-led initiative of 14 member countries and the EU. Through this partnership, India is aiming to gain access to expertise, technologies, and resources from other member countries for the sustainable development of its mineral resources. Other initiatives include the Indo-Pacific Economic Framework (IPEF), which India joined in 2022 and ratified the Agreement on Supply Chain Resilience in February 2024.

Furthermore, India can tap into the South-South cooperation, as China’s monopoly is seen as a national security concern globally because of its potential to disrupt critical industries and military capabilities. Through platforms such as IBSA, BRICS, and G-20, India can propose cooperation on critical mineral exploration, ethical sourcing, and technology transfers for production, creating a joint alternative model to China’s export restrictions.

While there is a comprehensive plan in place for India, the success of the critical minerals mission will depend on implementation, participation, technological preparedness, and adherence to environmental safeguards.

Conclusion

India’s pursuit of self-reliance is not just an economic imperative, but also a geopolitical and developmental necessity, as countries strive for clean energy transitions amid intense technological competition.

Adopting a multi-strategy approach of diplomatic outreach, partnerships, policy reforms, both within and abroad, and domestic capacity building, India is diversifying its critical mineral sources and reducing its vulnerability to supply disruptions and due to global shocks. Therefore, India has proactively signed MoUs and international agreements for exploration and mining. However, there is also the challenge of translating these international agreements into a competent domestic processing capacity and creating sustainable frameworks for the future.

The launch of the National Critical Mineral Mission, international collaborations, and growing investments in exploration and refining highlight a future-oriented approach to move from a buyer to a processor and exporter. By 2030, India is expected to have utilized its mining leases and stockpile lithium, cobalt, and other rare earth elements. Simultaneously, India should strengthen its domestic production facilities with private sector partnerships and foreign collaboration with countries such as Japan and Australia. By 2035, India is expected to set up a reliable supply chain for batteries and electronics, provided there is consistent investment.

While challenges remain, especially in acquiring processing technology, gaining public and private partnerships, and environmental management, India has laid a solid framework to emerge as a resilient and responsible global player in the rare earth ecosystem by 2050.

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