India’s Ministry of External Affairs (MEA) confirmed on Thursday that several Indian companies have received licences to import rare earths from China. The move comes amid tightening global supply dynamics and export restrictions imposed by Beijing that have threatened to disrupt the availability of critical minerals for domestic industries.

Rare earth elements are essential for a wide range of high-technology applications, including renewable energy systems, advanced electronics, and defence hardware. With growing demand from sectors such as solar power, smartphones, electric mobility, and missile guidance systems, the security of supply has become a pressing issue for policymakers in New Delhi.

To mitigate potential shortages, India is preparing to establish a strategic stockpile of rare earth minerals. This initiative aims to buffer the local market against sudden supply chain disruptions and foreign dependency risks. The effort aligns with a broader national strategy to secure access to critical raw materials and reduce import vulnerabilities.

The Union Cabinet recently approved the National Critical Mineral Mission, which earmarks ₹500 crore to support the creation of dedicated mineral processing parks. These parks will utilise existing infrastructure and attract private sector investment to establish advanced processing and refining units within India.

According to government officials, the mission will prioritise the development of indigenous technologies for processing and beneficiation of critical minerals. It also seeks to encourage research in mineral reagents, electrolytes, and extraction technologies through collaboration between public institutions and the private sector.

Discussions are ongoing between the government and leading academic institutions to explore partnerships that can accelerate technology development. Officials have acknowledged that India currently lacks the necessary processing capability and must build these systems from the ground up through coordinated R&D efforts.

Industry analysts note that while indigenous technological development is vital for long-term self-sufficiency, India may need to leverage foreign expertise in the interim. Collaborations with technologically advanced economies, including the United Kingdom, are regarded as positive steps in this direction. They stressed, however, that the pace of such cooperation must increase to meet rising domestic demand.

The Ministry of Mines, driving the nation’s critical mineral acquisition strategy, has already completed five rounds of auctions covering 55 critical and strategic mineral blocks across the country. Out of these, 34 blocks have been successfully awarded to various bidders.

Last month, the government launched the sixth tranche of auctions to further expand access to critical mineral resources. Officials believe that these continuous auctions, coupled with technological partnerships and domestic capabilities, will be instrumental in transforming India into a global player in the critical minerals value chain.

Based On ET News Report