India’s rare earth crisis: Missiles and defense held hostage by China’s control
India’s ambitions to dominate in cutting-edge missiles, satellites, and a thriving tech industry rest on a shaky foundation: rare earth materials. These 17 critical metals, like Neodymium for powerful magnets and Dysprosium for advanced electronics, are the backbone of everything from defense systems to electric vehicles. Yet, India is trapped in a precarious position, producing just 2,900 metric tons in 2024—a mere fraction of its soaring demand. With nearly 90% of its rare earth imports sourced from China, which controls the global supply, India’s defense and tech dreams are dangerously reliant on a single supplier. This isn’t just a supply chain problem; it’s a matter of national security for a nation striving to be a global powerhouse.
Rare earth materials are a group of 17 metallic elements, including the 15 lanthanides plus Scandium and Yttrium, prized for their unique magnetic and electrochemical properties. Despite their name, they’re not rare—Cerium, for instance, is more abundant than copper—but their scattered deposits make extraction costly and complex. These metals are indispensable for high-tech applications, powering permanent magnets in missiles and electric vehicles, phosphors in smartphone screens, and catalysts in clean energy systems. India’s heavy reliance on these materials underscores their strategic role in driving economic growth and bolstering national defense.
China’s dominance is a ticking time bomb. Geopolitical tensions could choke off supplies, grounding India’s missile programs or crippling its defense systems. Heavy rare earths like Dysprosium and Terbium, crucial for advanced electronics in military tech and laser systems, are 100% imported, as India’s domestic deposits lack these critical elements. Light rare earths, such as Lanthanum for batteries and Cerium for vehicle emission control, are produced locally by Indian Rare Earths Limited (IREL), but output falls far short of needs. Despite holding 6% of global reserves—making it the fifth-largest reserve holder—India’s production is stifled by stringent environmental regulations and a state-controlled mining sector. IREL processes beach sand deposits in Kerala, Tamil Nadu, and Andhra Pradesh, but its capacity of 10,000 metric tons of rare earth-bearing minerals is underutilized. Relying on China, which controls over 85% of global processing, exposes India to price volatility and supply disruptions—a vulnerability it cannot afford.
The risks are stark, but so are the opportunities. India is stirring, with bold plans to break free from China’s grip. The proposed “India Rare Earths Mission,” modeled after the successful Semiconductor Mission, could ignite a domestic production boom by streamlining regulations and incentivizing private investment. Partnerships with the US and Japan are gaining traction, offering pathways to diversify supply chains. For instance, a collaboration with Japan for rare earth processing in Andhra Pradesh signals progress. India’s coastal reserves, rich in light rare earths like Neodymium and Praseodymium, hold untapped potential. Private firms, if unleashed from bureaucratic shackles, could transform these deposits into a strategic asset. Yet, challenges loom large. Mining rare earths raises environmental concerns—chemical runoff and habitat disruption are real issues. Balancing ecological protection with economic urgency requires innovation, such as adopting cleaner extraction technologies.
Beyond defense, rare earths are the lifeblood of India’s clean energy and tech goals. Neodymium and Praseodymium drive the magnets in electric vehicle motors and wind turbines, while Europium powers the red phosphors in LED screens. The healthcare sector, too, relies on these materials for MRI machines and diagnostic tools. With India’s electric vehicle market projected to grow exponentially, demand for these metals will only surge. Failure to secure a stable supply could stall not just military advancements but also India’s commitments to reducing carbon emissions and building a sustainable future. The stakes are colossal—self-reliance in rare earths is non-negotiable.
India must seize this moment to rewrite its future. A nation that cannot control its rare earth supply risks its missiles staying grounded, its satellites faltering, and its tech dreams fading. The government must act swiftly, investing in advanced processing facilities and fostering global alliances to reduce dependence on China. Encouraging private sector participation and easing environmental bottlenecks without compromising sustainability is critical. The world is watching, and India’s resolve is being tested. Will it rise as a self-reliant force, harnessing its reserves to fuel a tech and defense revolution? Or will it remain ensnared in China’s chokehold, compromising its sovereignty and aspirations? The clock is ticking, and the choice is India’s to make. Bold action now could turn rare earths from a vulnerability into a cornerstone of national strength.
(The author Girish Linganna of this article is an award-winning Science Writer and a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him, at: girishlinganna@gmail.com)
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