India ramps up rare earth partnership with 5 African nations to counter China's dominance

Business Insider

2 days ago

India is intensifying its engagement with Africa in a strategic bid to diversify its sources of rare earth elements (REEs) amid growing global concerns over China's dominance in the critical minerals market.
India is enhancing collaborations with Africa to secure rare earth elements (REEs) and reduce its reliance on China.
This move addresses global concerns over China's dominance, controlling over 90% of REE supply, and its recent export restrictions.
India's partnerships include agreements with Zambia, Zimbabwe, Mozambique, Malawi, Côte D'Ivoire and other countries
Reuters reports that China currently controls over 90% of the global supply, raising urgent concerns about supply chain security. Earlier this year, Beijing further restricted the export of rare-earth magnets, escalating pressure on countries dependent on the technology.
In response, India has stepped up its bilateral outreach to strengthen its supply chain and reduce reliance on Chinese exports.
According to India's Minister of State for Atomic Energy, Jitendra Singh, New Delhi already has cooperation agreements in place with mineral-rich countries, including key African suppliers of rare earth and critical minerals.
"In the interest of developing bilateral cooperation with countries having rich mineral resources, the Ministry of Mines has entered into bilateral agreements with the governments of several countries, including Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, and Côte D'Ivoire, as well as international organizations such as the International Energy Agency (IEA)," Singh said in a written statement.
While India's engagement also spans countries in Latin America and Asia, Africa stands out as a vital partner due to its vast untapped reserves and growing geopolitical importance. Consequently the emerging Asian giant has begun initiating government-to-government memorandums of understanding (MoUs) with countries like Brazil and the Dominican Republic.
Singh added, " The broad objective of the MoUs is to provide an overarching framework for cooperation in research, development, and innovation in mining, with a particular focus on rare earth elements (REE) and critical minerals."
Mineral-rich Africa emerges as rare earth battleground
Africa, endowed with vast reserves of rare earth minerals vital to modern technology, has become the epicentre of a growing geopolitical contest involving China, the West, and India. These minerals, essential for powering electric vehicles, smartphones, military systems, and clean energy technologies, are now seen as strategic assets that could reshape the global balance of power.
India, now the world's fifth-largest economy, is leveraging its democratic credentials and expanding global clout to position itself as a strategic partner. Its investments, particularly in sectors like electric mobility, defence, and renewable energy, rely heavily on a stable supply of rare earths.
This engagement initiated by India, is part of a broader global race not only to access raw materials but to influence the future of manufacturing, trade, and technological advancement.
Unlike previous extractive models, the emerging approach places greater emphasis on value addition within Africa. Many governments across the continent are pushing for processing, infrastructure development, and local job creation, aiming to convert mineral wealth into long-term economic growth.