Narendra Modi’s Rare Earth Minerals Push: A Strategic Move Amid Global Supply Chain Shifts

India’s Prime Minister Narendra Modi has embarked on a significant strategic initiative to strengthen the country’s position in the global rare earth minerals market. This move comes at a crucial time when the geopolitical landscape is reshaping global supply chains, especially in critical minerals essential for modern technologies and defense industries.

Prime Minister Narendra Modi speaks during the first plenary session of the Brics summit in Rio de Janeiro, Brazil, on July 6, 2025. AFP | Firstpost

The Importance of Rare Earth Minerals

Rare earth elements (REEs) are a group of 17 chemically similar metals vital to manufacturing high-tech products such as smartphones, electric vehicles, wind turbines, and crucial military hardware. Despite their name, these minerals are relatively abundant in the Earth's crust but are rarely found in economically viable concentrations. Countries with rich deposits and processing capabilities have enormous strategic leverage due to the rising global demand.

China currently dominates the rare earth market, controlling approximately 60-70% of global production and refining capacity. This monopoly has prompted many nations to seek diversification to secure supply chains and reduce dependence on a single source.

Modi’s Strategic Push to Develop India’s Rare Earth Sector

Recognizing the strategic importance of rare earth minerals, Prime Minister Modi’s government has initiated policies to ramp up exploration, mining, and processing capabilities within India. The government is actively encouraging investment in rare earth projects, aiming to create a self-reliant supply chain that supports India’s growing technological ambitions and defense sector needs.

Modiji’s vision aligns with the broader Atmanirbhar Bharat (self-reliant India) initiative, emphasizing domestic production and reducing reliance on imports for critical materials. The government has also sought international partnerships to develop advanced processing technologies and foster innovation in this sector.

Global Pushback Against Weaponizing Critical Minerals

While India is pushing to harness its own resources, there is a growing international discourse around “weaponizing” critical minerals, where countries may use control over rare earth supplies as geopolitical tools. This has led to tensions and calls for transparent and stable trade policies to ensure these minerals serve global technological progress rather than political leverage.

India’s measured approach focuses on sustainable development, regulatory clarity, and fair trade practices, seeking to balance national security interests with the global economic ecosystem.

Expanding Beyond India: The Global Race for Rare Earth Independence

India is not alone in this pursuit. Countries like the United States, Australia, and Japan have been accelerating investments in rare earth mining and processing to break free from China’s dominance. For example, the US government has designated rare earth minerals as a critical sector for national security and is actively funding domestic projects.

Australia is leveraging its vast mineral wealth, while Japan focuses on recycling and securing supply chains through strategic alliances, especially with countries like India. This global race is fundamentally about securing future technologies, clean energy transition, and defense capabilities.

Challenges and Opportunities for India

Despite abundant reserves, India faces significant challenges in fully capitalizing on rare earth minerals. These include technological gaps in processing, environmental concerns related to mining, and the need for skilled workforce and infrastructure.

However, with sustained government focus, policy support, and international collaboration, India has the potential to emerge as a key player in the rare earth minerals market. This would not only boost its economic and technological growth but also enhance its strategic autonomy on the global stage.

Conclusion

Prime Minister Narendra Modi’s rare earth minerals push marks a forward-thinking strategic initiative aligning with India’s broader vision of self-reliance and global competitiveness. By investing in exploration, refining capabilities, and fostering international partnerships, India aims to secure its place in the critical minerals supply chain. As global demand for rare earth elements continues to surge, India’s efforts could reshape geopolitical dynamics and contribute significantly to the future of technology, clean energy, and defense sectors.

(Sources: Firstpost, TOI, Indian Express)