India and Japan Discuss Rare Earth Projects to Cut Reliance on China
ECONOMY & POLICY

India and Japan Discuss Rare Earth Projects to Cut Reliance on China

India and Japan are engaged in preliminary discussions to jointly explore rare earth deposits in Rajasthan as part of a strategic effort to reduce reliance on China for critical minerals. Indian authorities have recently identified three hard rock rare earth deposits in Rajasthan and Gujarat containing an estimated 1.29 million (mn) metric tonnes (t) of rare earth oxides, with the discovery announced last month by Union Mines Minister G. Kishan Reddy, who described the findings as capable of strengthening India's mineral security.

The talks follow a preliminary pact on critical minerals signed last year and envisage the dispatch of Japanese experts to study the deposits. Tokyo is expected to offer advanced extraction technology and financial support in exchange for a stable supply of rare earth materials to Japan. Officials emphasise that discussions remain at an exploratory stage and that no specific corporate partnerships or technology agreements have been finalised.

Hard rock rare earth deposits require specialised extraction techniques that India does not possess at scale, and Japanese technological expertise is seen as a key enabler for developing the reserves. Observers note that successful collaboration would involve long lead times and substantial investment in processing capacity, environmental safeguards and skills development. Both governments plan to prioritise secure, transparent arrangements that balance commercial and strategic objectives.

Rare earth elements are essential for permanent magnets used in electric vehicle motors, wind turbines, fighter jets and drones, and securing supplies has become a strategic priority for fast-growing economies like India. The talks occur amid rising regional tensions after China restricted exports of certain dual-use items affecting a number of rare earth elements, prompting Japan to diversify sources globally, including potential cooperation with India on lithium, copper and cobalt projects overseas. New Delhi regards assured access to these materials as vital for its industrial and defence plans.

India and Japan are engaged in preliminary discussions to jointly explore rare earth deposits in Rajasthan as part of a strategic effort to reduce reliance on China for critical minerals. Indian authorities have recently identified three hard rock rare earth deposits in Rajasthan and Gujarat containing an estimated 1.29 million (mn) metric tonnes (t) of rare earth oxides, with the discovery announced last month by Union Mines Minister G. Kishan Reddy, who described the findings as capable of strengthening India's mineral security. The talks follow a preliminary pact on critical minerals signed last year and envisage the dispatch of Japanese experts to study the deposits. Tokyo is expected to offer advanced extraction technology and financial support in exchange for a stable supply of rare earth materials to Japan. Officials emphasise that discussions remain at an exploratory stage and that no specific corporate partnerships or technology agreements have been finalised. Hard rock rare earth deposits require specialised extraction techniques that India does not possess at scale, and Japanese technological expertise is seen as a key enabler for developing the reserves. Observers note that successful collaboration would involve long lead times and substantial investment in processing capacity, environmental safeguards and skills development. Both governments plan to prioritise secure, transparent arrangements that balance commercial and strategic objectives. Rare earth elements are essential for permanent magnets used in electric vehicle motors, wind turbines, fighter jets and drones, and securing supplies has become a strategic priority for fast-growing economies like India. The talks occur amid rising regional tensions after China restricted exports of certain dual-use items affecting a number of rare earth elements, prompting Japan to diversify sources globally, including potential cooperation with India on lithium, copper and cobalt projects overseas. New Delhi regards assured access to these materials as vital for its industrial and defence plans.

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