New Delhi – India could become a key player in the world’s rare‑earth supply chain, a new report said on Saturday. The findings show that if the United States, Japan, Australia, and Brazil support India, the planet could see a more diverse market and stronger geopolitical stability.
India isn’t just a small‑scale producer. Its huge industrial base can handle downstream uses of rare earths—magnets, motors, batteries—that other emerging players struggle to host. That scale gives India an edge over countries like Australia or Brazil.
A recent meeting of leaders at the APEC summit in Gyeongju, where US President Donald Trump met Chinese President Xi Jinping, stalled on a major trade agreement. What did come out of that was a pause: China agreed to put off its strictest rare‑earth export controls for a year. The delay was welcomed by markets, but it also highlighted how fragile global supply chains are when they depend so heavily on China.
China still controls about 70 % of the world’s rare‑earth mining and over 90 % of refining. It also dominates the production of high‑performance magnets that power electric vehicles, wind turbines and precision missiles. When tensions flare, China’s control over these materials becomes a clear geopolitical lever.
The report points out that the one‑year reprieve is a golden window for the US and its allies to build credible alternatives. India’s name keeps popping up as the most promising candidate.
India already has the raw materials. Beaches across the country hold deposits of monazite, bastnaesite, and other rare‑earth minerals. What has lagged were processing capacity and environmental standards. Those are changing. In June, India announced talks with firms and plans for a tax incentive scheme to boost domestic manufacturing of rare‑earth magnets, a move aimed at cutting dependence on China.
Key companies are already stepping up. Sona Comstar, a major supplier of motoring components for electric vehicles, is building new magnet lines. State‑owned Indian Rare Earths Ltd. is expanding its refining facilities. Meanwhile, the Indian Space Research Organisation is refining high‑purity separation techniques originally designed for satellite parts.
If India’s political support keeps growing and its technology ecosystem expands further, the country could soon become the third pillar of a democratic rare‑earth network—following the US and Japan. This would help diversify the market, reduce vulnerabilities, and stabilize a key element of the global supply chain.
Source: ianslive
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