India Needs a Clear Strategy to Tackle China's Grip on Rare Earths

 India Needs a Clear Strategy to Tackle China's Grip on Rare Earths

As the global race for critical minerals heats up, India must confront a harsh reality: China controls the bulk of the world's rare earth elements — and it’s not afraid to use that dominance as leverage.

Rare earths and other critical minerals are the backbone of modern industry. From smartphones and electric vehicles to wind turbines and military technology, these materials are essential. And as the world shifts to a greener, tech-driven future, their importance is only set to grow.

China’s grip on these resources is overwhelming. According to the International Energy Agency, it refines about 90% of the world’s rare earths, 50-70% of cobalt and lithium, and 35% of nickel. On top of that, it holds the largest known reserves of rare earth elements — around 44 million metric tons, compared to India’s 6.9 million.

The consequences of this imbalance came into sharp focus in April, when, amid rising tensions with the U.S., China tightened its export controls on rare earths. Exports of rare earth magnets plunged in May, sparking global concerns about supply chain stability.

The message was clear: Beijing is willing to weaponize its rare earth monopoly. And that should be a wake-up call for India.

We need a dual-pronged strategy — one that focuses on securing supplies in the short term, while building long-term resilience through domestic exploration and processing.

In the immediate future, India should look to diversify its sources of supply. Partnerships with countries like Australia, Brazil, and Vietnam — all of which have significant reserves — could reduce our dependence on China. Strategic stockpiling and government-to-government agreements could also help buffer industries from sudden shocks.

But India can’t afford to remain a passive consumer. We must invest aggressively in mapping, mining, and refining our own rare earth reserves. While India’s known reserves are smaller than China’s, they are far from negligible — and remain largely untapped. What’s needed is a serious push, both in terms of policy support and private sector involvement, to develop a full-fledged domestic ecosystem.

This is not just an economic issue — it’s a national security priority. Critical minerals underpin everything from defense systems to green energy. If India wants to lead in the industries of the future, it must first secure the materials that power them.

The global trade landscape is shifting, and minerals are becoming the new battleground. India must act decisively — not only to shield its industries from disruption, but to chart a path toward real self-reliance.