Mumbai: In a strategic move to secure critical raw materials for its growing high-tech and clean energy sectors, India is actively exploring new sources of rare earth minerals from Russia. These minerals, essential for manufacturing electric vehicles, wind turbines, semiconductors, and powerful magnets, have long been dominated by China. However, Beijing’s recent tightening of export controls has prompted India to diversify its supply chains and seek alternative sources.
China currently controls over 90% of the global rare earth processing market. Its decision to impose stricter export regulations has disrupted international supply chains, leaving countries like India vulnerable. In response, Indian policymakers are encouraging domestic companies to explore partnerships with Russian firms, both private and state-owned, to reduce dependency on Chinese imports. The initiative represents a broader strategy to safeguard industrial growth and technological self-reliance.
Indian companies, including Loham and Midwest, are reportedly engaging with Russian counterparts to obtain rare earth minerals and access advanced processing technologies. Russia, which has developed sophisticated methods for extracting and refining these elements, has shown willingness to collaborate commercially. Joint ventures and technology transfer discussions are underway with major Russian entities such as Nornickel and Rosatom. These collaborations could play a critical role in enhancing India’s domestic capabilities in rare earth processing.
Alongside international collaborations, the Indian government is considering the creation of a strategic stockpile of rare earth minerals. The proposed stockpile would secure at least two months’ worth of supply to buffer against sudden disruptions from China or other global market fluctuations. This dual approach strengthening domestic reserves while forging international partnerships reflects a comprehensive strategy to ensure stable access to essential materials for India’s industrial and technological sectors.
Securing alternative sources of rare earth minerals is expected to have far-reaching impacts on India’s electric vehicle sector, renewable energy projects, and high-tech industries. Access to Russian technologies for processing these minerals could reduce production costs and improve the efficiency of domestic manufacturing. Moreover, it positions India to play a more prominent role in the global supply chain of critical minerals.
As India deepens its engagement with Russia, the move underscores the urgency of reducing reliance on a single supplier and fortifying national resource security. The success of these initiatives could have significant implications for India’s industrial independence, technological advancement, and long-term economic resilience.