Archive · 7 Nov 2025
India Poised to Join US-Japan Rare Earth Network Post-Trump-Xi Deal
Imagine special materials called rare earths are needed to make many modern things like phones and electric cars.
Right now, one country, China, is the main supplier, which makes it hard for others to get them.
Recently, leaders from the US and China had a meeting, and China agreed to not put restrictions on selling these materials for a year.
This gives India a chance to step up.
India has a lot of these rare earth minerals in its own land but hasn't been able to process them well.
Now, with a new plan, India wants to build factories to process these minerals and make magnets.
The idea is for India to become a strong partner with the US and Japan in getting these important materials, creating a group of democratic countries that can supply them.
India can not only get the materials but also use them because it has a big market for these products.
This effort is part of India's goal to be more self-reliant.
India is poised to become a key player in the global rare-earth supply chain, potentially joining the US and Japan.
A one-year delay in Chinese export controls on rare earths, following the Trump-Xi summit, provides India an opportunity to build its capabilities.
India possesses significant raw material reserves but needs to develop its processing, magnet-making, and downstream industries.
Strategic partnerships with the US, Japan, and Australia under the Quad framework are accelerating joint exploration and technology transfer projects.
India's domestic market size and focus on self-reliance ('Atmanirbhar Bharat') make it a strong candidate to become a hub for rare earth production and processing.
- Who
- India, in potential collaboration with the United States and Japan, as analyzed in The Diplomat.
- What
- India is positioned to become a significant player in the global rare-earth supply chain, forming a democratic network with the US and Japan.
- When
- Following the Trump-Xi summit in Busan, South Korea last month, with a one-year respite from Chinese export controls.
- Where
- India possesses rare earth reserves; potential collaboration involves the US, Japan, Australia (Quad framework).
- Why
- To reduce reliance on China's rare earth dominance, develop domestic processing and magnet-making capabilities, and diversify global supply chains.
Current Rare Earth Landscape
India's Strategic Potential
Global Rare Earth Dominance
Current Rare Earth Landscape
China holds a monopoly on rare earth exports and processing, creating supply chain vulnerabilities for other nations.
India's Strategic Potential
India, by developing its domestic capabilities and forming strategic alliances, can disrupt this dominance and create a democratic rare-earth network.
Resource Utilization
Current Rare Earth Landscape
While countries like Australia have mining capabilities and Brazil offers diversification, they cannot single-handedly offset China's dominance.
India's Strategic Potential
India possesses significant raw material reserves and a large domestic market, allowing it to link supply diversification with market demand and become a production and processing hub.
Technological Advancement
Current Rare Earth Landscape
The United States has made progress in metal and magnet production, but faces challenges in processing and scaling.
India's Strategic Potential
India can leverage fast-tracked technology sharing, particularly in refining and waste treatment, with partners like the US and Japan to accelerate its development and leapfrog costly phases.
- Key Opportunity
- One-year delay in Chinese export controls on rare earths following the Trump-Xi summit.
- India's Rare Earth Reserves
- Monazite, bastnaesite, and other rare-earth minerals found in beach sands.
- Domestic Initiatives
- Negotiating with companies, fiscal incentive schemes for magnet manufacturing, expanding refining capacity (IREL India Ltd.), adapting high-purity separation technology (ISRO).
- Strategic Partnerships
- Quad framework talks (US, Japan, Australia) for joint exploration, co-financing, and technology transfer.
- India's Role
- Potential 'third pillar' in a democratic rare-earth network, a hub for production and processing.
- Supporting Policies
- Prime Minister Narendra Modi's 'Atmanirbhar Bharat' (self-reliant India) agenda.
- Proposed US Actions
- Co-financing magnet plants, establishing reciprocal stockpiles, embedding rare earth cooperation in the Quad agenda.
