Rare Earth Elements: Whenever China is angry with any country, it stops or limits the supply of rare earths (REEs) there. Recently, China has also tightened the rules regarding export of rare earths. Under this, China has made licensing mandatory for the export of seven rare earths and finished magnets. Besides, an order has also been issued not to use them in the defense sector. Due to this decision of China, it has come into conflict with America.

What is rare earth?

Rare earth is actually a group of 17 minerals. They are used in making hi-tech products in various industries. From making smartphones to electric vehicles, radar systems, missiles, drones and even generating clean energy, they are used. These minerals, which seem very simple in appearance, are very effective in their effects.

The reserves of rare earth minerals in the whole world are about 130 million tonnes. Of these, China alone has the maximum of 44 million tonnes. Whereas, if we talk about India, it has reserves of about 6.9 million tonnes of rare earth, which is about 5 percent of the world’s total reserves. Although there is no dearth of rare earths in nature, but it is very difficult to extract them because they are found in mixed form, like many times these radioactive elements are found stuck with uranium.

Why is China dominant?

China extracts 3.48 lakh tonnes of rare earth minerals, which is about 70 percent of the global production. Whereas 90 percent of its processing work is also done in China. This is because China has such technology which can easily separate rare earths. In such a situation, rare earths extracted from other countries are also sent to China for processing.

In this way, China continues to dominate the world over rare earths. However, according to the IEA (International Energy Agency) report, by 2030, China’s share in rare earth mining is expected to decline from 69 percent to 51 percent and in refining from 90 percent to 76 percent. This trend reflects a broader international effort to diversify and balance the supply chain.

These minerals are found in rare earth

Cerium, neodymium, lanthanum, yttrium, scandium, praseodymium, samarium, gadolinium, dysprosium, erbium, europium, thulium, terbium, lutetium, promethium, holmium, ytterbium.

Efforts continue to end dependence on China

The amount of rare earth that India currently possesses is less than 1 percent at the global level. There are huge possibilities for the future in states like Kerala, Tamil Nadu, Odisha, Andhra Pradesh and Gujarat. The government is continuously promoting the detection, excavation and processing of rare earths in the country’s soil.

In this connection, the government had started the National Critical Chemical Mission in 2025. In the coming time, India can also import rare earths from countries like America and Australia. Demand for rare earths may increase by 300-700 percent by 2040. Preparations for this need to start now. Meanwhile, another good news is that government company IREL (India) Limited was removed from the US export control list. This is a big step, which opens doors for international cooperation for India.

Apart from this, IREL is also going to open a new facility in Visakhapatnam, where samarium-cobalt magnets will be produced. This will further help India in becoming self-reliant in technology. This magnet is very important for high-tech defense equipment.

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An important agreement was reached between America and Australia on Monday (20 October). US President Donald Trump and Australian Prime Minister Anthony Albanese signed this agreement. This deal is related to rare earth minerals and critical minerals, which are necessary in making electric vehicles, jet engines and defense equipment.

Trump told in the White House that this agreement was completed after four-five months of negotiations. The two leaders also discussed trade, defense equipment and submarine projects. Albanese said the total value of this agreement was 8.5 billion dollars (about Rs 71,000 crore). Under this deal, both the countries will invest in mining and processing projects in the next six months. Also, a minimum price floor has been fixed for critical minerals, which was a demand of western companies for a long time.

America is increasing trust in Australia

China has the world’s largest rare earth reserves, but Australia is also an important player in this field. America is now increasing its trust in its QUAD partner Australia so that its dependence on China is reduced.

This agreement also has geopolitical importance. Western countries now want to reduce dependence on China. In recent months, China has tightened rare earth export controls, increasing pressure on the global supply chain. America and its allies consider it a threat to global industries.

What is the challenge for India?

This news is special for India. America is taking minerals from its QUAD ally Australia, while India is still dependent on China in many areas. The question arises that if India also deals with China in its own interest, then why should it be considered a ‘strategic risk’, whereas America is doing the same thing. This deal will strengthen US-Australia economic and defense ties and could change the balance of power in the Indo-Pacific region. The challenge for India is whether it should go along with global politics or take steps in the interest of its resources.

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