Highlights
- China dominates 70% of the global rare earth elements market, prompting countries like India to develop independent mineral strategies.
- India launches the National Critical Minerals Mission with a ₹16,300 crore investment to secure technological and economic independence.
- Rare earth elements are crucial for advanced technologies, defense systems, and emerging economic capabilities worldwide.
The global competition for rare earth elements (REEs) has intensified, particularly in the context of the Russia-Ukraine war and evolving U.S. geopolitical strategies. A recent proposal from the Trump administration to leverage Ukraine’s rare earth resources as compensation for wartime aid highlights how these minerals are increasingly viewed as strategic assets. With Ukraine holding significant reserves of key materials like lithium, graphite, and titanium, the country’s natural wealth has become a focal point in international diplomacy and economic security. Rare earth elements matter, and critical minerals are a must. India is making moves, closing in on the world’s most populous nation status and fifth biggest economy.
Why Rare Earth Elements Matter
REEs are a group of 17 chemically similar elements that are essential for modern technology and defense applications. They are critical in producing electric vehicle batteries, semiconductors, mobile phones, medical devices, aerospace components, and military systems like jet engines and precision-guided missiles. Given their importance, securing a stable and independent supply chain has become a national security priority for major economies.
China currently dominates over 70% of the global REE market, raising concerns about supply chain vulnerabilities. This has prompted countries like the United States, European nations, and India to ramp up efforts to secure alternative sources and reduce reliance on Chinese supply.
India’s Push for Critical Minerals
Recognizing the strategic significance of REEs and other critical minerals, the Indian government launched the National Critical Minerals Mission (NCMM) in January 2025. With a ₹16,300 crore investment, the initiative aims to:
- Expand domestic exploration and mining of essential minerals.
- Fast-track regulatory approvals for critical mineral projects.
- Encourage international partnerships to secure resources from foreign suppliers.
- Invest in mineral processing parks and recycling infrastructure to boost self-sufficiency.
As part of this strategy, India has identified 30 critical minerals essential for economic and technological development, including lithium, cobalt, nickel, graphite, and copper. This aligns with global efforts to diversify supply chains, ensuring resilience against potential geopolitical disruptions, as reported in Indian Express (opens in a new tab).
Assessment and Strategic Implications
The growing geopolitical significance of rare earth elements and critical minerals underscores their role in shaping economic policies, trade relations, and technological advancements. The U.S.-Ukraine rare earth deal highlights how resource control is increasingly tied to geopolitical influence and security alliances. Meanwhile, India’s NCMM initiative reflects a proactive approach to mineral independence, reducing external dependencies, particularly in China.
Going forward, competition over REEs will intensify, with countries accelerating efforts to secure resources through domestic investments, global partnerships, and technological advancements in extraction and recycling. The strategic value of these minerals will continue to influence trade policies, defense strategies, and economic priorities worldwide.
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