Weaponisation of Rare Earth Minerals: Strategic and Geopolitical Implications

• Why in news: PM Modi Urges Brics To Prevent Weaponisation Of Minerals. “Securing and making critical mineral and technology supply chains resilient must be a shared goal,” PM Modi said.

• Rare Earth Elements (REEs) refer to a group of 17 chemically similar elements that include the 15 lanthanides along with scandium and yttrium, as classified by the International Union of Pure and Applied Chemistry (IUPAC) in 2005.
• Misnomer: Despite their name, REEs are not truly “rare.” According to the United States Geological Survey (USGS), most of these elements are relatively abundant in the Earth’s crust.

Application of Rare Earth Element

• Electronics: Due to their magnetic and phosphorescent properties, they are essential in smartphones, laptops, flat-panel displays, and headphones.
• Clean Energy: Powering high-performance magnets in wind turbines, electric vehicles (EVs), and solar panels is crucial for the renewable transition.
• Defence Sector: Used in precision-guided missiles, radar systems, sonar, and jet engines—key to strategic and technological superiority.
• Medical Technology: Enable advanced imaging tools in radiation-based cancer treatments, such as MRI and PET scanners.
• Industrial Use: Applied in petroleum refining, high-grade glass polishing, and production of strong, corrosion-resistant metal alloys.

India’s Current Position in Rare Earth Elements (REEs)

• REE Potential: India holds around 6% of the world’s rare earth reserves, indicating substantial untapped resource potential.
• Import Dependency: In FY 2023–24, India imported 2,270 tonnes of REEs, indicating a moderate dependence on external sources.
• Light REE Capabilities: India is currently capable of extracting light REEs from monazite-rich beach sands, especially along the coasts of Kerala.
• Heavy REE Refining Deficit: India lacks the technological and industrial infrastructure for refining heavy REEs, posing a strategic vulnerability in the critical minerals supply chain.

Factors Behind India’s Limited REE Production

1. Abundant Reserves but Low Commercial Viability: India has large rare earth reserves (~6.9 million metric tonnes), yet contributes less than 1% to global REE production. This is due to low-grade ore concentration and high extraction costs that make commercial exploitation difficult.
2. Restrictive Mining Regulations: REEs are classified as atomic minerals, which restricts mining rights to government entities like IREL and KMML and limits private sector innovation.
3. Underdeveloped Extraction and Processing Infrastructure: India lacks sufficient infrastructure for advanced processing, including separation and purification of REEs. (Example: India does not yet produce neodymium magnets on a commercial scale)
4. Regulatory Delays and Poor Exploration Data: Most mineral blocks are stuck at early exploration stages (G3 or G4 level). Inadequate geological mapping and delays in environmental and mining clearances deter both domestic and foreign investment.
5. Environmental and Social Challenges: REE mining can generate radioactive waste, leading to environmental risks. Additionally, many REE-rich areas lie in ecologically sensitive or tribal regions, making land acquisition difficult.

China’s Position in the Rare Earth Elements (REE) Market-

1. Dominance in Mining :In 2023, China produced approximately two-thirds (66–70%) of global mined REEs, making it the world’s largest REE extractor.
2. Monopoly in Refining: China controls nearly 90% of global REE refining capacity, including high-purity oxides and compounds used in magnets, EVs, electronics, and defense systems  .
3. Leadership in Downstream Production:China retains over 90% share of permanent magnet manufacturing, critical for EV motors, wind turbines, aerospace, and defense applications.

Impact of China’s Rare Earth Export Restrictions on India

1. Threat to India’s Electric Vehicle (EV) Industry: India’s EV manufacturing relies heavily on rare earth magnets used in motors and batteries. China’s restrictions on neodymium and dysprosium exports in 2025 have disrupted supply chains, causing production delays and increasing costs for Indian companies
2. Challenges to Defense Preparedness: Defense modernization is threatened as critical rare earths are vital for missile systems and advanced communication devices.
3. Diversifying Strategic Partnerships: China’s dominance in REE processing has prompted India to collaborate with Australia, the U.S., and Vietnam through initiatives like the India–U.S. Critical Minerals Partnership and QUAD.
4. Environmental and Social Challenges in Scaling Production: While expanding mining and processing, India faces challenges like radioactive waste management and resistance from tribal communities in mineral-rich areas.
5. Boost to Self-Reliance: The crisis strengthens Atmanirbhar Bharat andLiberalising Mining Policy
6. India plans to delist rare earth elements from the “atomic minerals” category, allowing greater private and PSU participation Make in India by accelerating REE localisation in EVS, wind turbines, solar panels, and defence manufacturing.
7. Urgency for Domestic Capacity: With 6% of global REE reserves, India faces strategic pressure to scale domestic mining and refining, especially of heavy REEs, where current capabilities are negligible.

Key Steps to Boost Domestic REE Production in India-

1. Liberalising Mining Policy: India plans to delist rare earth elements from the “atomic minerals” category, allowing greater private and PSU participation.
2. Prioritising Light REEs: The government aims to focus on extracting light rare earths like lanthanum and cerium, which are more abundant in Indian monazite sands and easier to process economically.
3. Strategic Reserves and Centralised Exploration: India plans to build strategic stockpiles of REEs and set up a central agency (like the National Critical Minerals Trust) to manage exploration, improve coordination, and ensure supply security.
4. Recycling and Waste Recovery: Plans are in place to extract rare earth elements like neodymium and dysprosium from mining tailings and e-waste, backed by a ₹1,500 crore incentive package.
5. Exploration of Onshore and Offshore Reserves: India is accelerating rare earth exploration, with the Geological Survey of India conducting over a thousand surveys, including deep-sea exploration to discover new reserves.