Rare Earths: Geopolitics, Green Energy, and India's Tech Destiny
Unpacking the Hidden Metals That Fuel Modern Innovation and National Security
What if the very building blocks of our digital future, our green energy dreams, and even our national security were controlled by a single, dominant hand?
"Alright, everyone, settle down!" Akhil, an equity investor whose knowledge seemed to stretch far beyond balance sheets, grinned at the eager faces of Anjali, Sumit, Zainab, and Lenin – four budding CFAs, fresh from a demanding week of financial models. They had gathered for their usual Friday evening "Akhil's Insights" session, keen to soak up his unique blend of market wisdom and geopolitical awareness.
"Today," Akhil began, a glint in his eye, "we're delving into something that's less about the obvious market movements and more about the invisible threads that weave through global power, technology, and India's strategic future." He paused for effect. "We're talking about Rare Earth Metals."
Anjali, ever the curious one, frowned. "Rare Earths? I've heard the name, but honestly, it sounds a bit… esoteric. Are they really that important, Akhil? I mean, are they just, like, fancy metals you find in a lab?"
Essential Technology Enablers
“What makes a resource vital to our daily lives?” Akhil asked, holding up his smartphone.
Anjali hesitated. “Something in my phone, like the battery?”
“Close,” Akhil said. “Rare Earth Metals—17 elements, including 15 lanthanides, scandium, and yttrium—are like technology’s vitamins. They’re not the main component but make everything work better. Your phone’s vibrant screen uses Europium for colours, Neodymium for the vibration motor. Electric vehicles, wind turbines, even MRI machines rely on them for efficiency and miniaturisation. They’re not rare in the Earth’s crust—some are more common than copper—but extracting and separating them is complex and costly. Anjali, why might these metals be critical for India’s tech ambitions?”
“They probably help us make phones or EVs locally, right? For ‘Make in India’?”
Akhil nodded. “Exactly. Without them, our manufacturing dreams stall.”
Geopolitical Power Dynamics
“Who might control a resource like this?” Akhil asked Zainab.
Zainab, geopolitics enthusiast, ventured, “China? I read they dominate some metal markets.”
“Spot on,” Akhil said. “China controls over 80% of Rare Earth processing, giving them immense leverage. While countries like the US, Australia, and India have deposits, refining raw ore into usable metals requires expertise and infrastructure China has mastered. They invested heavily when others avoided the environmental costs. Zainab, what risks does India face relying on one country for these metals?”
“If China cuts exports, our tech, and defence industries could grind to a halt.”
Akhil agreed. “Think ‘Make in India,’ our 500 GW renewable energy goal by 2030, or missile systems—all vulnerable to supply disruptions.”
India’s Reserves and Challenges
“Do we have Rare Earths in India?” Lenin asked, his quiet curiosity surfacing.
Akhil nodded. “India holds about 6% of global reserves, fifth-largest, mostly in beach sands along Kerala, Tamil Nadu, and Odisha. Indian Rare Earths Limited (IREL) extracts raw materials, but we don’t produce high-purity metals, especially ‘heavy’ Rare Earths for defence and electronics. Most output is exported for processing—often to China. Lenin, why might India struggle to process these metals domestically?”
“Probably because it’s expensive and polluting?”
“Exactly,” Akhil said. “Processing is energy-intensive, environmentally tricky, and needs advanced tech. Historically, government control over atomic minerals limited private investment. Recent mining law amendments and Quad alliances are steps forward, but we’re far from self-sufficient.”
Recycling E-Waste for Supply
“How could our waste help?” Akhil asked Zainab, circling back to her earlier idea.
“Old phones and laptops have Rare Earths, right?” Zainab replied.
“Absolutely,” Akhil said. “India generates over 3 million tonnes of e-waste yearly—one of the world’s largest volumes. Urban mining—recycling electronics—can recover Neodymium, Dysprosium, and more. Globally, e-waste could meet 10% of Rare Earth demand by 2030. It’s a domestic resource we control, reducing reliance on imports. But it needs eco-friendly tech to extract metals without harm. Zainab, how might this support India’s energy goals?”
“It could provide cheap materials for wind turbines, making green energy more affordable.”
Partnerships for Supply Security
“What could allies offer?” Akhil asked Sumit.
Sumit, ever analytical, said, “Countries like Australia have Rare Earths, so maybe we buy from them?”
“Right,” Akhil said. “Australia, the second-largest producer, has major players like Lynas Corporation. As a Quad partner, they’re strategically aligned. India could secure long-term contracts, co-invest in mines, or build joint processing plants. This diversifies supply away from China’s 80% processing dominance. Sumit, why might this matter for defence?”
“Because we need reliable Rare Earths for radar or missiles, without risking supply cuts.”
Synergy of Recycling and Partnerships
“How do recycling and partnerships connect?” Akhil asked Zainab again.
“Maybe recycling gives us some metals, and partnerships fill the gaps?” Zainab ventured.
“Brilliant,” Akhil said. “Recycling builds domestic resilience, leveraging India’s e-waste to supply light Rare Earths like Neodymium. It’s a long-term play as tech improves. Partnerships with Australia or the US provide immediate access to raw and processed metals, especially heavy Rare Earths we can’t yet refine. Together, they form a hybrid strategy: recycling reduces import needs over time; partnerships ensure stability now. Australia’s Neodymium-rich deposits complement recycled supplies. Zainab, how might this strengthen India’s global position?”
“We’d rely less on China and gain leverage in alliances like the Quad.”
Investment Opportunities
“Where might investors profit?” Akhil asked Anjali.
“Maybe in recycling startups or companies partnering with Australia?” Anjali suggested.
“Sharp,” Akhil said. “E-waste recycling is a growing market—projected at $20 billion globally by 2030. Startups developing green separation tech could soar. Indian firms like Tata Motors could invest in Australian mines to secure EV magnet supplies. Defence contractors might fund processing to ensure radar or missile components. Anjali, what risks would you check before investing?”
“High costs, environmental rules, and China’s market dominance.”
Autonomy Through Strategy
“What does this mean for India’s future?” Akhil asked Lenin.
Lenin said, “It could make us self-reliant, maybe even a tech leader.”
“Exactly,” Akhil said. “Combining e-waste recycling with partnerships supports ‘Make in India,’ our 500 GW energy goal, and defence security. Recycling leverages domestic resources; partnerships bring tech and supply stability. Together, they position India as a strategic player, less vulnerable to global disruptions. Lenin, how might this reshape India’s role globally?”
“We could lead in green tech and strengthen our voice in global alliances.”
I, Akhilesh, am dedicated to uncovering the silent revolutions that are not just shaping, but defining, India's tomorrow. I hope this conversation with Anjali, Sumit, Zainab, and Lenin brought clarity and insight into the complex world of Rare Earths. Did this dialogue-driven style, breaking down intricate technical and geopolitical realities into understandable pieces, resonate with you? If so, consider sharing this post with your network.