China has mandated a government license for exporting China-sourced rare earth minerals and banned technologies for rare earth minerals extraction, magnet manufacturing, and military-related exports without government approval.
- Restrictions may impact advanced chips and AI-related R&D with potential military uses, and disrupt supply chains.
About Rare Earth Elements/Minerals (REEs)
- These are a set of 17 elements including 15 lanthanides plus scandium and yttrium.
- Elemental forms of rare earths are iron-grey to silvery metals, typically soft, malleable, ductile, and chemically reactive.
- Contrary to their name, rare earth elements are moderately abundant in nature.
- Significance: REEs are critical for high-tech electronics, green energy, defense systems, advanced industrial applications, electric vehicles, and emerging technologies.
Challenges
- Supply chain concentration: China accounts for about 70% of global REEs mining.
- India holds the world’s fifth-largest reserves.
- Extraction Complexity: REEs are dispersed and difficult to extract economically.
- Environmental Concerns: Mining and processing produce toxic waste & radioactive by-products.
India’s Initiatives for supply chain resilience
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