Context: China has tightened controls on rare earth mining and processing through new interim measures, reinforcing its dominance over global production and refining.
About China vs India in Rare Earth Elements (REEs):
What are Rare Earth Elements (REEs)?
- A group of 17 metals (LREEs + HREEs), vital for clean energy technologies (EVs, wind turbines), defence, and high-tech devices.
Difference:
| Aspect | China | India |
| Reserves | Holds ~50% of global reserves (largest) | Has deposits, but much smaller share; mainly in Kerala, Odisha, Andhra Pradesh, Jharkhand, Tamil Nadu |
| Production (last 5 yrs) | Accounts for >60% of global output | <2% of global production (mostly via Indian Rare Earths Ltd. under DAE) |
| Refining Capacity | ~92% of global refining capacity → dominates value chain | Very limited refining; mostly exports raw monazite sands, low processing technology |
| Exports / Global Supply | Supplies ~30% of global demand (biggest exporter) | Heavily import-dependent; >75% imports from China (since 2021) |
| Research & Innovation | Leads in REE research (~30% of global papers) | ~6% of global research output |
| Policy Push | Tight export controls (Apr 2024 & 2025), bans on processing tech exports, ~$14B annual exploration funding | Atal Innovation Mission, National Mineral Policy 2019; but lack of mid-sized firms & R&D ecosystem limits dominance |
Relevance in UPSC Exam Syllabus
- GS Paper III – Economy: Industrial policy, resource distribution, self-reliance in critical minerals.
- GS Paper II – International Relations: Strategic dependencies, trade wars, India–China–U.S. dynamics.
- GS Paper III – Environment & Tech: Role of REEs in renewable energy, EVs, green transition.
