FTAs with Chile, Peru to help cut reliance on Chinese rare earth
Trade secy
This story was originally published at 17:34 IST on 15 July 2025
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--Trade secy: Chile, Peru FTA to cut reliance on China for rare earths
NEW DELHI – India's free trade agreements with Chile and Peru will help reduce reliance on China for rare earth minerals, which are crucial for the automobile, technology, defence and aerospace sectors, Commerce Secretary Sunil Barthwal said on Tuesday.
South America, including Peru and Chile, has significant geological potential for critical minerals, including copper and lithium. These minerals are used for the production of electric vehicle batteries, renewable energy technologies, and clean energy applications.
Currently, China accounts for 60%-70% of the global supply chain of the rare earth minerals. Restrictions imposed by China in April on the exports of rare earth minerals have caused a severe shortage and adversely impacted the production of many automobile facilities around the world.
To tackle Chinese dominance on rare earths, Finance Minister Nirmala Sitharaman had earlier this month held talks with Peru's Foreign Minister Elmer Schialer Salcedo and expressed India's interest in importing the critical minerals from the country.
After Peru, Chile is the second South American country with which India has started negotiations for a free trade agreement. India and Chile concluded the first round of their Comprehensive Economic Partnership Agreement negotiation in May. The next round of the talks is expected in August. End
Reported by Krity Ambey and Kuldeep Singh
Edited by Saji George Titus
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