Copyright © HT Digital Streams Limit all rights reserved. An example of Xenotime, a main mineral containing rare earth elements, is displayed in the Natural History Museum in London. (Lying Photo: Reuters) Summary China dominates the global rare Earths supply chain and does not hesitate to weapon it. The latest export countries expressed concern about the dependence and underlined the urgent need for diversification. The US trade war has opened a fresh front that is now affecting the Indian industry in a big way. China’s combat on the export of rare earth magnets – processed from rare earth elements (REs) – disrupted supply chains, especially in the country’s car sector. The development also underlines why India should urgently reduce its dependence on China by increasing domestic exploration and refinement of its own rare ear reserves. In April, Beijing imposed export restrictions on seven rees in retaliation for US tariff increases. Importers have been forced to navigate a complicated licensing system, causing delays and deficiencies worldwide. Indian firms face tighter restrictions than many others, Mint reported last week. China dominates the global rare earth industry, exploring 46% of Rees and refining 74% from 2024, according to the International Energy Agency. These 17 metals are essential for everything from electric vehicles and fighter jets to smartphones and MRI scanners. Given the high cost of withdrawal, China has built up an edge in the sector for decades. India, despite the fact that the world’s third largest rare re-reserves were at 6.9 million tonnes, is only a small portion. The country has remained very imported, with China as the primary supplier. India’s position This is not the first time China Rees has used as a geopolitical lever. In 2010, it briefly cut off the export to Japan during a territorial position. The latest border substances serve as a timely reminder for India to move faster to ensure access to these critical materials. There were a few steps taken. Under the National Critical Mineral Mission (NCMM), which was launched in January 2025 with a £ 16,300 crore layout over seven years, Rees was identified as one of 30 critical minerals. Their production and imports are a national priority. In March, for the first time, the Ree sector for private investment was opened. In a Reuters report, it is noted that the government plans to impose fiscal incentives for domestic production in response to current disruption. But more needs to be done. An Exim banking paper of 2020 identified key gaps. The most important among them is India’s limited refining and processing capacity, which has made long efforts to use domestic reserves. Greater investment in R&D is also needed to develop alternatives to critical minerals, the report states. India also needs to look outside – by enabling joint mining companies and helping Indian firms to obtain assets abroad. This strategy has been adopted by countries such as the US and Japan. As global attempt to reduce Chinese dominance in the sector, India can appear as a viable alternative provider – although transition will take time. China’s own dominance took almost two decades to build after it started prioritizing Ree development in the 1980s. What next? The demand for rare earth is set to rise as the global economy turns to the unbundling and electrification. According to the IEA’s critical mineral Outlook 2025, the question stood at 91 kilotonnes in 2024 and could double almost until 178 kilotonnes by 2050. Clean energy will be the most important driver, with the demand for this segment that is expected to rise from 20% today to more than 33% by 2050. ‘Growing demand for permanent magnets, especially not a wind force. Read it | EV industry, the government is struggling to find alternatives, as China will raise the offer of rare nature magnet on the nature of the nature of the nature of the nature of the nature of the question, the greatest vulnerability remains China’s dominance – and its willingness to weapon supply chains. Australia is expected to appear as an important provider over the next decade. Meanwhile, India and Central Asian countries – including Kazakhstan, Kyrgyz, Tajikistan, Turkmenistan and Uzbekistan – are interested in joint exploration of rare earth and other critical minerals. Such efforts may not produce immediate results, but may gradually start at the grip of China over the global offer. Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More Topics #In Maps #General Factors Read Next Story
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