Context: As a part of the US–China trade war, China has imposed export restrictions for all countries on seven heavy REEs (rare earth elements), which cannot be exported out of China by refiners until and unless specific authorisation is obtained.
Relevance of the Topic: Prelims: Key facts about Rare Earth Elements; National Critical Minerals Mission.
Major Highlights:
- Export restrictions by China would not directly hamper India because:
- Manufacturers using REE are in relatively early stages of shifting production to India, and thus, the quantities of REEs imported to India has been low. E.g., Semiconductor fabrication, advanced electronics, and defence manufacturing is still in the setting-up stages in India.
- India imports finished products (semiconductor chips using REEs) from the US, Europe and China. However, India may get indirectly affected if the REE supply chain to the US is disturbed.
- Indian imports of rare earth elements (REEs) such as dysprosium, gadolinium, lutetium and samarium have been quite small. According to the recent government data, only 2270 tonnes of REEs and compounds of REEs were brought into India in FY24.
What are Rare Earth Elements?
- REE are a set of 17 metallic elements. These include the 15 lanthanides on the periodic table, plus Scandium and Yttrium.
- Often dubbed as ‘vitamins of modern industry’, REE are essential components of:
- High-tech electronics, E.g., cellular telephones, computer hard drives, flat-screen monitors, televisions etc.
- Defence applications, E.g., electronic displays, guidance systems, lasers, and radar and sonar systems.
- Electric vehicle batteries and Renewable energy infrastructure.
- China controls over two thirds (~69%) of the total global rare earth mine production and nearly 90% of processing capacity.
Rare Earth Minerals in India
- India is estimated to be the fifth largest holder of REE (6% of the global REE reserves). However, it only produces 1% of global output, and lacks the advanced extraction technologies required for self-sufficiency.
- India meets most of its requirements for REE from China. In FY19, 97% of REE imports by quantity were sourced from China.
- REEs available in India: Lanthanum, Cerium, Neodymium, Praseodymium, Samarium. Monazite and Thorium are the principal source of rare earths.
- Heavy REEs are not available in India: Dysprosium, Terbium, and Europium, in extractable quantities.
- REEs are one of thirty substances listed as critical minerals, whose production and imports have been made a priority under the National Critical Mineral Mission, by the Ministry of Mines.
Also Read: National Critical Mineral Mission
The government of India under the National Critical Minerals Missions aims to streamline permissions for exploratory activities, fund research, and conduct more auctions of mineral blocks to increase the domestic production of Critical Minerals.