Indian companies are exploring potential partnerships with Russian firms to secure better supplies of rare earth magnets and critical minerals, as China continues to tighten its grip on global rare earth exports. Beijing’s increased rare earth export restrictions have continued to hit industries worldwide and in India, as it controls nearly 90% of rare earth processing. China recently strengthened its export restrictions, which were initially introduced in April amid trade tensions with the US. The curbs have disrupted production in sectors such as automobiles, energy, and consumer electronics.
India turns to RussiaRussia has developed rare earth processing technologies that are currently being trialled in pilot projects. Moscow has expressed interest in expanding these technologies commercially with Indian partners, ET reported, citing sources.To deal with China’s squeeze, the government has asked domestic firms, including Lohum and Midwest, to study possible collaborations with Russian companies skilled in critical minerals. State-owned Russian companies like Nornickel and Rosatom are potential partners.Indian research institutes, including labs under the Council of Scientific and Industrial Research, the Indian School of Mines in Dhanbad, and the Institute of Minerals and Materials Technology in Bhubaneswar, have been asked to review Russian processing technologies, according to ET.This initiative is part of broader India-Russia cooperation in recent months covering rare earth and critical mineral extraction, underground coal gasification, and modern industrial infrastructure development.India also plans to stockpile rare earth materials and offer incentives worth Rs 7,300 crore to boost domestic magnet production.Rajat Verma, founder and CEO of Lohum, said, “We are continuously exploring new raw material resources and technical collaborations that can further advance India’s magnet production capabilities.” He added that Lohum already processes rare earth ores and converts them into oxides, metals, and magnets.Back in in 2023-24, India imported 2,270 tonnes of rare earth metals and compounds, up nearly 17% year-on-year, with over 65% coming from China.
