December 7, 2022
2 mins read

Can India break China’s monopoly on rare earth mining?

A few countries such as Germany have started to take measures to block Chinese investments in rare earth mining as well….writes Mahua Venkatesh

As the world grapples with a strained supply chain network amid surge in Covid 19 cases in China and its subsequent stringent measures, countries are now starting to scout for alternative producers including India. The Centre is expected to roll out a concrete strategy for encouraging investments in rare earth mining as global companies are now scouting for alternative markets.

Industry bodies including the Confederation of Indian Industry (CII) have taken up the issue with the government. A person with direct knowledge on the matter told India Narrative that the government could carve out specific measures in the Union Budget next year.

Rare earths comprising 17 elements include cobalt, copper, lithium nickel among others and are critical to reduce dependence on fossil fuels. The rare earth components are also required to manufacture electric vehicles, batteries, smartphones and even military weapons systems.

Developing a well carved out value chain of rare earth is also in sync with Prime Minister Narendra Modi’s Aatmanirbhar programme.

“While developing a well functioning rare earth mining industry will take time, the process needs to begin and the government along with the private sector must move fast on this to ensure India can take pole position in supplying these minerals to the world,” an analyst said.

A few countries such as Germany have started to take measures to block Chinese investments in rare earth mining as well.

According to Oilprice.com, though the west is looking for alternatives to Chinese rare earth magnets, “the process is slow.”

“Since China has supplied rare earth supplies to the world predominantly for decades, breaking dependence is proving difficult. However, new sources are arising,” it said, adding that India will emerge as a contender.

Vietnam and Brazil are the other two countries sitting on huge piles of rare earth minerals. However, at present, their production is among the lowest among all countries at only 1,000 tonnes per year each, a report by Visual Capitalist pointed out.

India has the world’s fifth largest rare earth element reserves.

(The content is being carried under an arrangement with indianarrative.com)

ALSO READ: Pakistan caves in China’s demands

Previous Story

British bizman apologises after Indian-origin doc flagged his ‘racist joke’

Next Story

Key bills to be taken up during Winter Session

Latest from -Top News

Harvard sues Trump over foreign students ban

Harvard University has filed a federal lawsuit against the Trump administration after being barred from enrolling international students, marking its second legal challenge in a month against what it describes as politically

Pakistan may face stricter IMF terms

The International Monetary Fund (IMF) will undertake its next funding review for Pakistan in the second half of 2025, with 11 new conditions now attached to the continuation of its Extended Fund

Indian diaspora in Japan backs Operation Sindoor

Members of the Indian diaspora in Japan have strongly endorsed Operation Sindoor, India’s targeted military response to the April 22 terror attack in Pahalgam, Kashmir, praising Prime Minister Narendra Modi’s leadership and

WHO adopts Global Pandemic Agreement

The agreement seeks to boost international coordination and ensure equitable access to life-saving tools during future pandemics, while reaffirming respect for national sovereignty in public health decisions In a move aimed at
Go toTop

Don't Miss

Bill reintroduced in US to protect ‘aged-out’ Indian kids

More than 250,000 children and young adults are living in

Japan to strengthen ties with EU to counter China

Japan has been trying to strengthen its partnerships with its