China's Dominance in Rare Earth Elements: A Strategic Challenge for India
UPSC Relevance
Prelims: Science and Technology (Rare Earth Elements and their applications); Geography (Mineral and Energy Resources - distribution); Indian Economy (Strategic Minerals); International Relations (Geopolitics of resources).
Mains:
General Studies Paper 1 (Geography): Distribution of key natural resources across the world.
General Studies Paper 2 (International Relations): Effect of policies and politics of other countries on India’s interests; Bilateral, regional and global groupings and agreements.
General Studies Paper 3 (Economy/S&T): Indigenization of technology; Infrastructure: Energy; Conservation.
Key Highlights from the News
Rare Earth Elements (REEs): China has imposed new, stricter regulations on the mining and processing of REEs.
REEs are essential for the manufacturing of clean energy technologies (electric vehicles, wind turbines), defense, and high-tech devices like smartphones.
China has significant global dominance in this sector: controlling nearly half of the world's reserves, over 60% of mining, and 92% of refining capacity.
Using this dominance as a strategic weapon, China is imposing export restrictions on REEs and their processing technology.
Countries like India and the United States heavily rely on China for REEs. Over 75% of India's REE imports are from China.
To reduce this dependency, other countries are seeking alternative sources, increasing domestic production, and collaborating with each other.
COMMENTS