Why is News :
- India has asked IREL (India) Ltd, a state-run miner, to suspend a 13-year-old agreement on rare earth exports to Japan.
- This move aims to secure domestic supply and reduce dependence on China amid global supply disruptions and strategic concerns.
Key Developments:
- Targeted Element: Neodymium – used in EV motors, wind turbines, defence, and medical devices.
- Existing Agreement: Since 2012, IREL supplied rare earths to Toyotsu Rare Earths India, a subsidiary of Toyota Tsusho, for processing and export to Japan.
- Current Status:
- 2024: 1,000 MT exported to Japan (⅓ of IREL’s annual production).
- India now seeks to retain this supply for domestic use and strategic stockpiling.
- Bilateral Constraint: The export deal is under a government-to-government agreement, requiring amicable renegotiation.
Strategic Rationale Behind India’s Move:
China’s Weaponization of Rare Earths:
- China controls over 85% of global processing capacity.
- Recent curbs on rare earth exports have disrupted EV, tech, and defence industries globally.
- 2010 precedent: China blocked REE exports to Japan over a geopolitical row.
India’s Vulnerability:
- India imports 100% of rare earth magnets, mainly from China.
- FY 2025: 53,748 MT of rare earth magnets imported.
Strengthening Domestic Capability:
- India has 6.9 million MT of rare earth reserves (5th largest globally).
Plans underway to:
- Increase neodymium production to 450 MT by FY26 and double it by 2030.
- Incentivize magnet production and rare earth processing facilities under Make in India/PLI schemes.
National Security & Clean Tech Goals:
- REEs are vital for nuclear energy, missiles, radar, satellites, EVs, etc.
- Reducing external dependence aligns with India’s Atmanirbhar Bharat goals and energy transition strategy.
Challenges:
- Processing Tech Gap: India lacks advanced infrastructure for magnet manufacturing and high-grade separation technologies.
- Statutory Clearances: IREL awaiting approval for 4 new mines to boost domestic output.
- Geopolitical Balancing: Japan is a strategic partner, and India must avoid friction while realigning resources.
Way Forward:
- Diplomatic Management: Ensure the Japan agreement is renegotiated without damaging strategic ties.
- Fast-track Infrastructure: Establish rare earth supply chains, R&D partnerships, and corporate collaborations
- Incentivise Innovation: Launch schemes for magnet production, especially in EV and defence sectors.
Rare Earth Elements (REEs)
What are REEs?
- Group of 17 elements: 15 lanthanides + Scandium + Yttrium.
- Found in same ores; chemically similar.
- Light REEs: La to Eu (Atomic No. 57–63)
Heavy REEs: Gd to Lu (Atomic No. 64–71) + Sc & Y (chemically similar).
Key Properties
- High density, melting point, conductivity, and thermal conductance.
- Usually have a +3 oxidation state.
- Found in minerals like monazite, bastnaesite, xenotime, loparite.
- Cerium is the most abundant REE.
Applications of REEs
- Permanent magnets (Neodymium-based): Used in EVs, wind turbines, power steering, speakers, etc.
- Electronics: Smartphones, LEDs, digital displays, fibre optics.
- Green Tech: Hybrid cars, catalytic converters, solar panels.
- Healthcare: MRIs, cancer treatment, laser surgery.
- Defence: Missile systems, aircraft, satellite communication.
- Industry: Steelmaking, glass polishing, petroleum refining.
- Challenges
- Rare Earth Dilemma: Green tech benefit vs. toxic extraction waste.
- Health hazards: Often laced with thorium/uranium.
- Chinese Monopoly:
- 37% of global reserves
- Controls 90–95% of global supply
- Environmental damage: 1 ton of REE → 2000 tons of waste.
- India’s Position
- 5th largest reserves (~13.07 million tonnes) – mainly Light REEs in monazite sands.
- Found in coastal states: AP, Odisha, Kerala, TN, Maharashtra, Gujarat.
- Extraction: Neodymium and Praseodymium to 99.9% purity.
- Producer: IREL (Indian Rare Earths Limited), under the Dept. of Atomic Energy.
- Plants: Ganjam (Odisha), Aluva (Kerala); JV with Toyota Tsusho (Toyotsu Rare Earths India).
- Recent find: Carbonatite deposit in Gujarat.
India’s Challenges
- Lack of Heavy REEs.
- Absence of magnet/alloy production ecosystem.
- Tech gap in refining & separation.
- Need for industrial-scale capacity.
Initiatives
- Rare Earth & Titanium Theme Park (IREL + BARC).
- Exploring foreign collaborations.
- Plans to promote domestic rare earth value chain (extraction → magnets).
UPSC Relevance
GS Paper 1/3 – Geography + Economic Development
Distribution of key minerals (REEs); Strategic importance of REEs in global & national economies
GS Paper 2 – International Relations
India-China rare earth competition; Bilateral collaborations with Japan, Australia
GS Paper 3 – Science & Tech
Application in green technology, defence; Role in strategic autonomy and Atmanirbhar Bharat
Mains Question:
Q. Rare Earth Elements are critical to clean energy and strategic technologies, yet pose environmental and geopolitical challenges. Discuss India’s strengths and limitations in building a self-reliant REE ecosystem