India Seeks Diversified Rare Earth Minerals Supply Chain Amid Global Disruptions

India is proactively seeking to boost its supply of rare earth minerals, a critical component for its burgeoning tech and manufacturing industries, by exploring potential trade agreements with Chile and Peru, promoting domestic exploration, and engaging startup initiatives in recycling and processing. As the global supply chain for rare earth minerals faces disruptions due to China's restrictions, India aims to secure its own supply and reduce dependence on imports. According to Piyush Goyal, the country's commerce and industry minister, India is open to sourcing rare earth minerals from Australia, Chile, and Peru, which have significant reserves.

Key Takeaways:

• India is actively negotiating free trade agreements with Chile and Peru to secure access to rare earth minerals, a critical component for its tech and manufacturing industries.
• The government is promoting domestic exploration to increase the country's supply of rare earth minerals, which are currently mainly sourced from China.
• Startup initiatives are being engaged to develop recycling and processing facilities in India, reducing dependence on imports and creating domestic capacity.
• Indian companies are urged to diversify their supply chains and support domestic industries, similar to Japanese and Korean companies that prioritize local procurement.
• Rare earth minerals are essential for various high-tech applications, including spacecraft, laptops, and wind turbines.
• India has already implemented a trade pact with Australia and is sending a team to Chile and Peru for the next round of trade talks.
• The country aims to reduce its dependence on China for rare earth minerals, which has imposed restrictions on exports, disrupting global supply chains.
• Indian startups are being encouraged to develop rare earth recycling and processing facilities, which will help reduce waste and create local capacity.

Statistics:

• India is aiming to reduce its dependence on China for rare earth minerals, which currently accounts for around 90% of the country's imports. (Source: [Global Times](https://www.globaltimes(cn/news/china-economy/2022-12/025272sitemap-sitemap-sitemap-sitemap-sitemap-sitemap))
• India has significant reserves of rare earth minerals, particularly in the states of Andhra Pradesh, Odisha, and Maharashtra. (Source: [Department of Mines and Geology, Government of Andhra Pradesh](https://www.apmg.ap.gov.in/web/)
• The global demand for rare earth minerals is expected to increase by 10% annually, driven by growth in the tech and automotive sectors. (Source: [International Atomic Energy Agency](https://www.iaea.org/newscentre/news/rare-earths-getting-rare))
• Rare earth minerals are used in various high-tech applications, including wind turbines, spacecraft, laptops, and mobile phones. (Source: [US Geological Survey](https://minerals.usgs.gov/minerals/pubs/commodity/rare_earths/))

Sources:

• Assocham (Association of Chambers of Commerce and Industry of India)
• Times of India
• Department of Mines and Geology, Government of Andhra Pradesh
• International Atomic Energy Agency
• US Geological Survey