April 2025
April 2025
China announces restriction for 7 rare earth metals exports
China announces it will restrict exports of 7 rare earth metals critical for high-tech industries, including samarium, terbium, and lutetium.
July 2025
China holds about half of the world's rare earth reserves, while India holds just 8%. But when we talk about the obvious geological potential (OGP), India has only explored its 15% of OGP.
India depends almost entirely on China for rare earth magnet supply chain.
The automotive sector contributes 7.1% to India's GDP and almost half of its manufacturing GDP.
Rare earths are critical to the four pillars of any modern economy. They are:
- Semiconductors
- Automotive
- Defence and Security - from fighter jets to submarines
- Commercial aviation
India remains the second largest arms importer.
India hopes to raise domestic value addition in electronics from current 18 to 20% to 35 to 40% in the coming years.
In 2010, China abruptly unofficially halted rare earths shipments to Japan following a flareup near the Senkaku islands, and the arrest of a chinese trawler crew.
Throughout the 1970s and early 1980s, it was the US that led the world in rare earth production and produced more than two thirds of the world's rare earth annually.
China, then a mirror player, saw rare earths not just some elements of trade for money, but as critical building blocks of future technologies.
Beginning in the 1980s, Beijing heavily invested in geological exploration, refining technology, academic research and state subsidised processing infrastructure.
Beijing began laying foundations for state directed rare earth strategy, according the paper titled, "Reimagining US rare earth production: Domestic failres and the decline of US rare earth production dominance.", published by Stanford University.
From 1985 to 1995, China's annual rare earth mining production leaped from 8,500 tonnes to almost 50,000 tonnes. During the same time, US rare earth production declined. Between these years, the production surged 40% per year rate.
Even if they were mined somewhere else in the world, the come for China for refining because many refineries in the western countries were shut down because of environmental issues.
The Chinese policy was to actively undermine any new refinery coming up. They would flood the market with below cost rare earth elements, so no new competition came up.
India's National Critical Mineral Mission, the Geological Survey of India has been tasked with conduction 1,200 critical mineral exploration projects including for rare earths between 2024 and 2031. The Ministry of Mines has listed 30 critical minerals to focus on in the near future.
The much hyped lithium found in Jammu and Kashmir, about the 5.9 million tonnes in early 2023, the auction failed to draw bidders due to low exploration data. Ministry of Mines asked the GSI to do more rounds of exploration.
Unlike China, where state run giants and provincial governments bankroll entire supply chains, India's rare earth sector lacks serious participation.
Rare earth extraction and processing are energy intensive and environmentally taxing, often generating radioactive waste and heavy metal pollution.
The World bank has forecast a 500% surge in demand for critical minerals by 2050, to meet the global clean energy goals.
With global demand for critical minerals set to increase fourfold by 2030, and the energy transition is expected to require over $1.7 trillion in mining investments.
Australia ready to support India
- Australia has reaffirmed its commitment to becoming a key supplier of critical elements such as rare earth to India amid rising global demand for rare earth elements and a surge in electric vehicle production.
- Australia's New South Wales, has a lot of rare earth elements.
- Australia, leads the world in rooftop solar deployment per capita, also aims to contribute its technological know-how.
Pic: autocar professional
