Informist, Saturday, Jun. 28, 2025

NEW DELHI – India has been taking a series of steps to reduce possible disruptions in the supply of rare earth elements, the finance ministry said Friday. China's restrictions on rare earth element exports were "concerning" amid the recent trade and tariff developments, it said in its Monthly Economic Review for May.

"Minerals such as lithium, cobalt, nickel, and rare earth elements are vital for solar panels, wind turbines, electric vehicles, and energy storage systems," the ministry said. "Hence, such restrictions are bound to hamper the development of industries such as electric vehicles, defence and renewable energy."

Of the 30 critical minerals identified, 24 are under the auction authority of the government since August 2023. The National Critical Mineral Mission launched in January is meant to build a self-reliant and resilient framework for such minerals, for both strategic and clean energy uses, the report said. The mission runs from 2024-25 (Apr-Mar) to FY31, targetting 1,200 domestic exploration projects and looking to upgrade the value chain in India.

The government is also expanding offshore exploration and forging international partnerships to diversify supply, including with Argentina and Australia, the report said. Prime Minister Narendra Modi will visit Argentina and meet President Javier Millei in early July. India is also the only developing country in the US-led Minerals Security Partnership that aims to strength supply chains of critical minerals.

A joint venture under the Ministry of Mines is investing abroad and looking to acquire critical mineral assets. The Geological Survey of India has ramped up its exploration programmes for critical mineral deposits. In June, mining rules have been streamlined for better access and extraction of rare earth elements, the finance ministry said. Centres of excellence will also be developed to identify, develop and implement extraction processes for critical minerals, according to the report. End

Reported by Aaryan Khanna

Edited by Avishek Dutta

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