Highlights
- India is exploring Russian rare earth processing technologies through potential partnerships with Nornickel and Rosatom.
- The aim is to reduce India's 65% import dependence on China, though no actual deals have been signed yet.
- While the geopolitical ambition is clear, Russia lacks commercial-scale rare earth separation and magnet production capabilities comparable to China's vertically integrated supply chain, which controls 90% of global refining.
- India's ₹7,300 crore incentive package and growing R&D efforts signal serious intent toward self-sufficiency.
- Current Russian-Indian collaboration remains an early-stage policy rather than an operational disruption.
So what of Moscow magnets and Delhi dreams? This seems to be a scenario contemplated by India’s The Economic Times in “India turns to Russia to break China’s rare earth monopoly,” certainly crackling with geopolitical urgency. But is there more sizzle than substance? According to the report, Indian firms and research labs are evaluating Russian rare earth processing technologies—with hints of potential tie-ups involving Nornickel (opens in a new tab) and Rosatom (opens in a new tab). In theory, it’s a bold attempt to redraw the rare earth map. In practice, it’s an early-stage ambition wrapped in speculative sourcing.
What Holds Up to Scrutiny
China does, in fact, dominate global rare earth refining and processing about 90% of the world’s supply. India’s import dependence is also real: more than 65% of its rare earth metal and compound imports in FY2023–24 came from China. The urgency is warranted. Beijing’s October 2025 expansion of rare earth export controls only underscored global exposure to Chinese bottlenecks.
It’s also credible that Indian state-backed research outfits like CSIR (opens in a new tab), IREL (opens in a new tab), and the Indian School of Mines (opens in a new tab) are probing partnerships. And Lohum’s CEO Rajat Verma (opens in a new tab) was accurately quoted as confirming the firm is exploring technical collaborations. That said, the article stops short of citing any actual deals—because none yet exist.
The Fog Around the Furnace
The speculative edge comes in framing Russia as India’s breakout partner. While Moscow does have rare earth resources and pilot-stage separation tech, it is not a global leader in commercial-scale magnet production or REE separation. Rosatom’s foray into critical minerals is nascent, and Nornickel, while experienced in base and platinum group metals, lacks a deep footprint in rare earths.
The article’s biggest leap? The suggestion that this partnership could help India “break China’s monopoly.” That’s a geopolitical stretch. No current Russian-Indian collaboration is remotely capable of matching China’s vertically integrated rare earth chain—not in capacity, cost, or market control.
The Investor Signal
Still, the signal matters. India is finally getting serious about rare earth self-sufficiency—considering stockpiles, R&D, and a ₹7,300 crore incentive package for local magnet production. If even partial Russian tech proves scalable, it could seed a longer-term diversification arc. For now, though, this is diplomacy and industrial policy in motion—not a disruption to current supply chain realities.
Source: The Economic Times, October 17, 2025.
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Of all the countries to go to look for RE-related IP down the value chain and according to this, India is considering Russia!
Isn’t drawing the ire of the West by already profiting from cheap Russian oil imported and then product export profiting and drawing US/West wrath enough?
Now the US is locked in a struggle with both superpowers and India it is suggested is now looking to China’s number one supporter.
If India thought cozying upto another BRIC would draw goodwill points from China they have been soundly disappointed.
Agreed, one has to question the sources for many of today’s hyped up RE articles.
Presently, India is not one of our favored areas for RE retail investment opportuniites.
GLTA – REI