India's Growing Demand for Rare Earths
As India transitions to renewable energy, it faces an increasing demand for rare earths.
Despite being the fifth-largest holder of rare earths, India relies heavily on China for imports due to a lack of advanced extraction technologies.
India is diversifying its sources by forming agreements with the U.S., Latin America, and Africa to reduce reliance on China.
China’s Dominance and Risks
China controls over one-third of the global rare earths supply and 70% of production, with India sourcing 60% of its imports from China.
China’s past actions of halting supplies, like the recent ban on antimony and rare earth extraction technologies, highlight risks in relying on China.
The global supply chain’s vulnerability, further exacerbated by Russia’s reduced ore supplies, has pushed India and others to seek alternatives.
Kazakhstan as a Strategic Alternative
Kazakhstan, rich in rare earths, is emerging as a viable alternative to China for India.
Kazakhstan holds 15 of the 17 rare earth elements and is investing in extraction technologies, making it a strong potential partner.
India is strengthening ties with Kazakhstan through initiatives like the ‘Connect Central Asia’ policy and the International North-South Transport Corridor.
Kazakhstan is expected to significantly increase its rare earth extraction from 2024 to 2029, benefiting India’s supply chain.
Future Collaboration and Strategic Benefits
India’s commitment to renewable energy (500 GW by 2030) underscores the need for reliable rare earth supplies.
India’s collaboration with Kazakhstan can reduce dependence on China, enhance resource security, and support clean energy goals.
The proposed ‘India-Central Asia Rare Earths Forum’ aims to boost partnerships, share expertise, and promote sustainable extraction practices to strengthen India’s rare earth supply chain.
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