India To Build Strategic Rare Earth Reserve To Secure Defence, EV, And Electronics Supply Chains, Announces Defence Secretary

India is mulling the establishment of a strategic reserve of rare earth minerals to bolster its defence manufacturing capabilities.

Defence Production Secretary Rajesh Kumar Singh revealed this during a media event in New Delhi on 20 September, according to a Bloomberg report.

This marks the first public announcement of such plans, aimed at ensuring uninterrupted supply during surges in defence production. Singh emphasised that the reserve would help 'tide over immediate requirements' in emergencies.

The move comes amid China's recent export curbs on rare earth elements, which dominate global supply. India, heavily reliant on imports, seeks to reduce vulnerabilities in critical sectors like defence, electric vehicles, and electronics.

The initiative aligns with broader efforts for self-reliance in critical minerals. The government has been exploring domestic production incentives and international partnerships, including with Australia and Myanmar, to counter China's near-monopoly.

Rare earths are essential for high-tech applications, from magnets in missiles to components in renewable energy systems. Meanwhile, experts note that this strategic stockpile could enhance India's geopolitical stance.

With rare earths being vital for modern warfare, the reserve would safeguard against supply disruptions. The plan follows previous steps, such as the National Critical Mineral Mission launched by Prime Minister Narendra Modi, focusing on exploration and processing.

It is worth noting that India's push includes fiscal incentives worth up to Rs 5,000 crore for rare earth magnet production. Reports indicate ongoing discussions with industry stakeholders to ramp up manufacturing in hubs like Hyderabad.

Please click here to add Swarajya as your preferred and trusted news source on Google

Also Read: India Ramps Up Critical Mineral Partnerships With Latin America To Curb China Dependence And Accelerate Green Transition