
In a bold geopolitical move, India eyes self-reliance in critical minerals
India has officially taken a major leap toward breaking its dependency on China in the rare earths sector — a market that has long been dominated by the Chinese cartel. In a high-stakes decision this week, the government approved a substantial funding plan to boost the domestic exploration, extraction, and refinement of rare earth metals.
But that’s not all — India is also drawing up a strategic blueprint to build national stockpiles of these critical minerals, echoing the energy security model seen in petroleum reserves.
Why It Matters
Rare earth elements (REEs) — like neodymium, dysprosium, and lanthanum — are the unsung heroes of modern technology. From electric vehicle motors and smartphones to wind turbines and guided missiles, these metals are essential, and China currently controls over 85% of global supply.
India’s overdependence on Chinese rare earths has long been viewed as a strategic vulnerability. That vulnerability became a focal point in recent months, especially as global supply chains shift and geopolitical tensions deepen.
What’s the Plan?
According to officials familiar with the matter, the government will:
- Invest in state-owned and private mining ventures for rare earth exploration and processing.
- Expand domestic refining capabilities, particularly in the northeastern and central belt regions rich in monazite sands.
- Create strategic stockpiles, similar to those maintained for crude oil, to ensure long-term industrial and defense security.
- Open up public-private partnerships to bring in tech expertise and reduce lead time for full-scale production.
A Strategic Shift, Not Just an Economic One
“This is not just about economics or industry. It’s about national security,” a senior government official said on condition of anonymity. “We cannot allow ourselves to be held hostage by any one country when it comes to resources that power everything from satellites to smartphones.”
India’s decision mirrors similar moves by the U.S., EU, and Japan — all of whom have scrambled in recent years to diversify away from Chinese supplies. However, India brings something unique to the table: untapped reserves and a massive domestic demand base.
Experts React
Industry analysts have welcomed the move, but warn that success won’t happen overnight.
“Rare earth mining is complex, and environmentally sensitive. The key will be how India balances speed with sustainability,” said Dr. Meera Joshi, a resource economist at IIT Madras. “But if executed well, this could be a game-changer for India’s tech and defense sectors.”
The Bigger Picture
As global competition intensifies, the ability to control one’s own supply of critical minerals will likely define strategic power in the 21st century. With this announcement, India has signaled it’s ready to play hardball — and it’s not backing down.