BS EDIT: India’s Rare Earth Wake-Up Call

By Business StandardPublished On Jun 11, 2025

A Supply Shock

In April, China imposed export licence requirements on certain rare earths

For Indian manufacturers, already strained by global tensions, this has meant a near-total halt in critical mineral supplies

Why It Matters

Rare earth minerals are essential for sectors like electric vehicles, solar power, and electronics

With China controlling most of the world’s reserves, extraction, and processing, India finds itself dangerously dependent

Missed Signals

A decade ago, Japan faced a similar disruption and responded swiftly with stockpiles and alternative supply chains

India, despite worsening ties with China since 2020, failed to anticipate or prepare

Slow Steps Forward

Recent moves suggest some awareness

The government’s KABIL initiative and investments by Vedanta and smaller firms indicate early momentum, but these remain fragmented and uncoordinated

The Strategic Gap

What India lacks is a comprehensive strategy that integrates domestic capability with global partnerships

Without clear direction and policy coherence, these isolated efforts will not be enough

A Regional Imperative

China sources minerals from Myanmar; Indonesia demands local processing

India must adopt a pragmatic regional approach if it wants to secure its place in tomorrow’s mineral supply chains