India Secures Rare Earth Supply from Australia Amid China Curbs
India is taking decisive action to strengthen its critical minerals supply chain, engaging with Australia to secure access to essential rare earths and copper. This strategic pivot responds to recent export restrictions by China, which controls a significant share of global rare earth assets used in electronics, defense, and EV manufacturing.
Critical Minerals
Australia has been identified as a key partner, with Indian officials actively in discussions over mining and resource extraction. These talks aim to secure early-stage mining blocks for rare earths, ensuring India a steady supply and reducing dependence on China. Complementing this, India is exploring copper sourcing agreements with Australian producers, leveraging Australia’s rich deposits alongside India’s refining capabilities.
Supply Chain Resilience
Recognizing vulnerabilities, Indian automakers and electronics manufacturers have flagged disruptions caused by China’s export throttling—particularly in rare earth magnets. In response, the government launched a ₹5,000 crore initiative to build a robust domestic supply chain for rare earth materials. At the same time, India’s public sector enterprise IREL has stopped rare earth exports to Japan and ramped up domestic production, targeting 450 tonnes of neodymium oxide by FY 2026, with plans to double output by 2030 and initiate domestic magnet manufacturing.
Strategic Shift
By combining overseas resource partnerships with domestic production scaling, India is reshaping its mineral supply strategy into a dual-track model. This strengthens national security, advances clean-energy goals, and accelerates technological modernization by minimizing reliance on a single external source. As global geopolitics alter resource dynamics, India’s proactive approach enhances self-reliance while forging critical alliances in the minerals sector.
