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Explore Developing Rare Earth Reserves as Global Alternative to China
NEW DELHI – June, 2025
India is taking steps to harness its vast rare earth reserves in a bid to emerge as a viable alternative to China in the global supply chain, following Beijing’s recent export restrictions on critical minerals.
India’s Union Minister of Commerce and Industry called China’s move a “wake-up call” for the international community and emphasized the strategic opportunity it presents for India to develop its own rare earth production capabilities.
“India is poised to play a key role in building a more diversified global rare earths supply chain,” said Gracelin Baskaran, a leading expert in critical minerals.
India holds some of the world’s largest reserves of rare earth elements—key components in technologies such as electric vehicles, wind turbines, and advanced electronics. However, the country currently lacks the industrial infrastructure to process and refine these minerals for end-use applications.
Developing this capacity, experts note, will require significant investment, technology partnerships, and policy reforms to compete with China’s dominant position in rare earth processing, which accounts for over 80% of global refining output.
Efforts are underway to attract private sector participation and build a robust domestic ecosystem. Analysts suggest that, if successful, India could play a critical role in reducing global dependence on a single supplier and enhancing supply chain resilience.
