Rare Earth Reserve / India will no longer rely on China for rare earths; preparations underway to build reserves

Rare Earth Reserve: The Indian government is considering a plan to create a strategic reserve of rare earth minerals and other critical minerals needed for defense production. This initiative aims to ensure the availability of these minerals in emergency situations, which are useful in the manufacture of critical military equipment such as missiles, aircraft, radars, and warships. Senior Defense Ministry official Rajesh Kumar Singh unveiled the plan at an event held in New Delhi on Saturday. This is the first time India has publicly announced plans for such a strategic reserve.

Need for Strategic Reserves

Rare earth minerals play a vital role in the defense and technology sectors. They are used not only in military equipment but also in electric vehicles, wind energy, and other high-tech industries. Any disruption in the global supply chain could severely impact India's defense preparedness. The creation of this strategic reserve is an important step toward ensuring self-reliance in times of supply shortages or global crises.

China's Dominance and Global Challenges

China controls approximately 90% of the global market for rare earth minerals, especially rare earth magnets. Since April this year, China has imposed restrictions on the export of these minerals, disrupting global supply chains. Although these restrictions have been eased somewhat recently, China's market dominance is forcing Western countries and countries like India to seek alternative suppliers. This strategy will not only promote self-reliance in the defense sector but also help diversify the global supply chain.

India's Strategy: Mining and Recycling

The Indian government has taken concrete steps in this direction. Recently, a ₹1,500 crore scheme was approved, aimed at recycling critical minerals from batteries and electronic waste (e-waste). Additionally, rare earth mines have been declared strategic projects, which will expedite the mining approval process. Rajesh Kumar Singh said, "India has substantial reserves of critical minerals, and we will be able to utilize them better in the future."

Future Prospects

This strategy will not only strengthen India's defense preparedness but also position it to become a significant player in the global supply chain. By building strategic reserves and accelerating the mining process, India can enhance its self-reliance and become a reliable source of rare earths and other critical minerals in the global market. This initiative will prove crucial not only for the defense sector, but also for electric vehicles, renewable energy, and other emerging industries.