PM Modi's rare earth push in Africa and a pushback against weaponising critical minerals

First Post

08-07-2025

In a pushback against China's dominance, Prime Minister Narendra Modi is advocating for diversified and secure supply chains for rare earth minerals essential to the global clean energy transition read more
Prime Minister Narendra Modi speaks during the first plenary session of the Brics summit in Rio de Janeiro, Brazil, on July 6, 2025. AFP
At the 17th Brics Summit in Rio de Janeiro, Indian Prime Minister Narendra Modi on Monday made a compelling case for collective action among member nations to safeguard the future of critical mineral supply chains. Without naming any country, his remarks were interpreted as a subtle admonition directed at China's growing dominance over rare earth resources.
Prime Minister Modi emphasised that strategic minerals that are vital for sectors such as clean energy, electronics and electric mobility should not be monopolised or weaponised by any country. His appeal was anchored in the idea of making supply chains secure, reliable and equitable.
STORY CONTINUES BELOW THIS AD
Brics, originally comprising Brazil, Russia, India, China and South Africa and now expanded to 11 countries, has emerged as a significant bloc for global south cooperation. Prime Minister Modi's proposal reflected India's broader apprehension over the geopolitical risks arising from China's overwhelming control over the rare earth processing industry. His comments came days after China imposed export controls to tighten its grip on these strategic minerals.
An implicit challenge to Chinese dominance
The timing of Prime Minister Modi's remarks appeared far from coincidental. China reportedly controls between 90 to 95 per cent of the global rare earth processing capacity, enabling it to wield significant leverage over countries dependent on these resources.
India, alongside other Brics and non-Brics partners, is increasingly seen as seeking a multipolar approach to critical mineral governance. By calling for Brics collaboration, Prime Minister Modi appeared to be urging the bloc to collectively ensure that such materials are governed by fair trade principles rather than geopolitical calculations.
Quad's complementary move
Just days before the Brics summit, India had already signalled its strategic intentions through its participation in the newly announced Quad Critical Minerals Initiative. Together with the United States, Japan and Australia, India pledged to bolster and diversify supply chains for essential minerals.
This initiative, described in official statements as a move to strengthen economic security and collective resilience, was widely seen as a complementary strategy to India's push at Brics.
The Quad's formation of a mineral alliance highlighted India's dual approach working within multilateral forums such as Brics while also aligning with like-minded strategic partners. This broader outreach is perceived as an effort to balance China's dominance and to reinforce India's own ambitions in the green economy sector.
Forging ground-level partnerships in Africa
India's strategy has not been confined to multilateral diplomacy alone. Prime Minister Modi's recently concluded tour of Ghana and his upcoming one in Namibia indicate a parallel focus on resource securitisation through bilateral partnerships. Last week in Accra, Prime Minister Modi finalised a significant agreement with the Ghanaian government on rare earth mineral mining, a development touted as critical to India's electric vehicle and clean energy ambitions.
The rare earth accord, signed after wide-ranging talks with Ghanaian President John Dramani Mahama, is both economically and geopolitically significant. This deal is a step forward towards reducing dependence on China's rare earth supplies.
Namibia's role in India's mineral calculus
The prime minister's discussions in Namibia would focus on critical minerals and the diamond trade. India looks keen on tapping Namibia's reserves of lithium, cobalt, uranium and rare earth elements. While Namibia does not currently export rough diamonds directly to India, Prime Minister Modi's visit is expected to deepen collaboration and streamline supply routes, particularly for minerals essential to green technologies.
Namibia's vast marine diamond and mineral reserves, previously routed through intermediaries like London and Antwerp, were being seen as potential direct sources for Indian industry. India is already the top polished diamond exporter, but has seen a slump in recent times. A favourable deal with Namibia can give a boost to Indian diamond industry.
STORY CONTINUES BELOW THIS AD
India's African outreach: A broader strategy
India's growing footprint in Africa is viewed as a multi-pronged strategy. Beyond Ghana and Namibia, New Delhi has signed agreements with multiple African countries, including South Africa, Mozambique, Tanzania and the Democratic Republic of Congo. These agreements serve not only India's immediate mineral requirements but also its broader geopolitical agenda.
India's Africa strategy is intended to counterbalance China's dominance in the continent's mining sector, where Beijing has made considerable investments. Chinese companies reportedly control over 80 per cent of the Tenke Fungurume mines in the DRC, one of the world's largest cobalt producers. Meanwhile, China's inroads into Zimbabwe's lithium sector have only sharpened India's focus on resource diversification.
Strategic autonomy through resource security
Prime Minister Modi's global outreach and call for collaborative supply chains appeared to be driven by a broader goal of achieving strategic autonomy in critical sectors. India's push for clean mobility, renewable energy and electronics manufacturing is expected to drive demand for rare earths, lithium, cobalt and similar materials. As such, securing a stable and diversified supply of these inputs has become a national priority.
The Confederation of Indian Industry has projected Indian investments in Africa could reach $150 billion by 2030 suggesting that the current mineral diplomacy is only the beginning of a long-term engagement.
In combining diplomatic pressure, multilateral coordination, and bilateral engagement, Prime Minister Modi's strategy is seen as an attempt not merely to secure minerals, but to reshape the rules of the global critical mineral economy — away from coercion and toward cooperation.