Why in news?
China recently tightened controls on rare earth mining and processing, reinforcing its global dominance. This development has sparked discussion about India’s dependence on Chinese supplies and the need to secure critical minerals for clean energy and high‑tech industries.
What are Rare Earth Elements?
Rare Earth Elements are a group of 17 metals (including the 15 lanthanides plus scandium and yttrium). They are essential for electric vehicles, wind turbines, defence systems, electronics and other high‑tech applications.
China and India: a comparison
- Reserves: China holds about half of global reserves, while India has deposits in states like Kerala, Odisha, Andhra Pradesh, Jharkhand and Tamil Nadu but in much smaller quantities.
- Production: Over the last five years China accounted for more than 60% of global output, whereas India produced less than 2%, largely through Indian Rare Earths Limited under the Department of Atomic Energy.
- Refining capacity: China controls about 92% of the world’s refining capacity, dominating the value chain. India mostly exports raw monazite sands and lacks processing technology.
- Exports and supply: China supplies around 30% of global demand; India remains heavily import‑dependent, with more than 75% of its rare earth imports coming from China since 2021.
- Research and innovation: China leads with roughly 30% of global research publications on rare earths. India accounts for about 6% of global research output.
- Policy initiatives: China continues to impose export controls and invests billions in exploration and technology. India’s National Mineral Policy 2019 and programmes like Atal Innovation Mission aim to encourage exploration, but the country lacks mid‑sized firms and a robust R&D ecosystem.
Relevance to UPSC syllabus
- Economy: Industrial policy, resource security and self‑reliance in critical minerals.
- International relations: Strategic dependencies and trade tensions involving India, China and the US.
- Environment and technology: The role of rare earths in renewable energy and green transitions.
Securing rare earth supplies will require investment in domestic exploration and processing, building research capacity and strategic partnerships with other countries.