India's Strategic Shift: Securing Rare Earth Resources
India halts IREL's rare earth exports to Japan to preserve resources for domestic needs and reduce reliance on China, focusing on developing domestic processing capabilities. India's move follows China's export restrictions on rare earths impacting global industries. IREL seeks to expand local mining and processing amidst existing bilateral commitments.
India has instructed the state-owned miner IREL to pause its agreement on rare earth exports to Japan, marking a strategic pivot to safeguard resources for domestic use. The move, aiming to diminish dependency on China for vital materials, comes amid China's tightening grip on global rare earth supplies.
IREL, facing constrained domestic processing capacity, historically exported rare earths due to these limitations. However, as China's export cuts ripple across industries worldwide, India seeks to bolster its internal capabilities. Commerce Minister Piyush Goyal has urged suspending exports to prioritize local needs.
Under the current bilateral agreement, IREL exports to Japan a significant quantity of rare earths, mainly used in high-tech applications. While immediate cessation is challenging, India is negotiating an amicable resolution with Japan, while aggressively exploring expansion in rare earth mining and processing capacities within the country.
(With inputs from agencies.)
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