India dodges direct impact of China rare earth element curbs, but worries linger

Workers transport the soil that contain rare earth elements for export in a port in Lianyungang, Jiangsu province, China. Archive. | Photo credit: Reuters

Indian imports of rare earth elements (REE), such as Disposio, Gadolinio, Lutetio and El Samario, have been quite small and protecting national supply chains, at least for a few months, for important interruptions, as shown by commercial data. As part of the United States War, China, Beijing imposed export restrictions to seven “heavy” REE, which cannot be exported outside China by refiners until a specific authorization is obtained.

The developments highlight Indian attempts to obtain more solid access to critical minerals in general, and rees in particular. While the government tries to attract companies to move more of their supply chains for semiconductors and defense electronics to India, access to minerals and ree used in their production has been a parallel approach.

Until now, since manufacturers are in relatively early internships of changing production here, the amounts of REE imported to India have a low bone. According to the data shared by the Ministry of Mines earlier this month in Parliament (before China’s export curbs) were informed, 2,270 tons of REE and ree compounds to the country in 2023-24 were taken to the country.

As such, much of the possible supply shock of China’s curbs has moved through the chain to countries such as Japan, which have faced such curbs in the past, they have already worked to accumulate stock batteries worth months. As such, specific interruptions of India may not occur immediately.

Critical minerals

Rees is one of the thirty substances that the Government of the Union has listed as critical minerals, whose production and imports have made a priority under the tasks of the National Mineral Mission (NCMM) by the Ministry of Mines. Even before China’s curbs, the government marked the excessive dependence of Chinese suppliers as a problem that could have consequences in the future.

“The production and processing of many critical minerals are concentrated geographical, which makes the global supply vulnerable to several risks,” the ministry said in a presentation in January. “China’s restrictions on certain critical minerals, the Russian war -Kinraine and other problems highlight the fragility of the critical supply of minerals and the need to diversify sources,” said the ministry. These vulnerabilities were for the last time when China Similarly restricted exports last year Or antimony.

According to the mission, announced by the Minister of Finance, Nirmala Sitharaman, last year the presentation of the budget, the government will rationalize the permits for exploratory activities, funds and carry out more auctions or mineral blocks.