India in Talks with Australia to Source Rare Earth Minerals, Says Official
In a strategic push towards self-reliance in critical mineral supply chains, India has initiated high-level talks with Australia to source rare earth elements, a senior government official revealed. This move is aligned with India’s broader agenda of reducing its dependence on China for essential raw materials vital for renewable energy, electric vehicles (EVs), and high-tech manufacturing.
Rare earth minerals—such as neodymium, praseodymium, and dysprosium—are essential components in the production of wind turbines, EV motors, semiconductors, and defense systems. However, China currently dominates over 85% of the global supply chain, posing a potential vulnerability for nations aiming for clean tech independence.
“Discussions are underway with Australia to create a long-term supply agreement. These minerals are key to our national strategy for energy security and Atmanirbhar Bharat,” said a senior Indian official familiar with the matter.
Why Australia?
Australia is among the top global producers of rare earth minerals and offers a stable, democratic alternative to China. The India-Australia Comprehensive Strategic Partnership, signed in 2020, has paved the way for collaboration in critical and strategic minerals.
Both countries are also members of the Quad alliance, along with the US and Japan, where diversifying rare earth sources is a shared goal. Indian firms like IREL (India) Limited may partner with Australian miners such as Lynas Rare Earths or Arafura Resources, according to early-stage speculation in trade circles.
India's Broader Critical Minerals Strategy
India’s Ministry of Mines has already identified 30 critical minerals and launched the KABIL (Khanij Bidesh India Ltd) initiative to secure strategic sourcing partnerships abroad. Talks with Australia are part of this multi-pronged effort.
In parallel, India is investing in domestic exploration, processing technologies, and private sector participation to build a resilient rare earth ecosystem by 2030.
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FAQ Section
Q1. Why are rare earth minerals important for India?
Rare earth minerals are essential for clean energy technologies, such as wind turbines and electric vehicles, as well as in defense and electronics industries. Securing these minerals ensures strategic autonomy and technological growth.
Q2. What is the role of Australia in rare earth supply?
Australia is one of the largest producers of rare earth elements and offers a politically stable and reliable alternative to China. India aims to build long-term partnerships with Australian firms.
Q3. How does this agreement help reduce dependence on China?
By partnering with Australia, India diversifies its rare earth supply chain and lowers its strategic vulnerability caused by overreliance on Chinese exports.
Q4. Which Indian bodies are involved in rare earth strategy?
Key stakeholders include the Ministry of Mines, IREL (India) Limited, and KABIL (Khanij Bidesh India Ltd), which is tasked with acquiring overseas mineral assets.
Published on:July 8,2025
Published by :Selvi
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