India and Australia are partnering to diversify rare earth supply chains and reduce dependence on China. This alliance aims to boost domestic industries and strengthen their role in clean energy and national security

India and Australia are strengthening cooperation in rare earth resources to reduce China’s dominance in this strategic sector. The partnership seeks to combine Australia’s advanced mining expertise and established processing capabilities with India’s significant reserves to create a more diversified global supply chain. This collaboration aligns with both nations’ strategic and industrial ambitions by offering global markets a non-Chinese source of critical minerals vital to emerging technologies. Yet, the initiative faces challenges, including limited domestic processing infrastructure in India, environmental regulations, low ore concentrations, and high extraction costs. India possesses some of the world’s largest rare earth reserves but contributes less than 1% of global output, constrained by regulatory barriers such as provisions under the Atomic Energy Act of 1962, processing bottlenecks, and limited private participation. Australia’s technological edge and existing supply chains could help India overcome these hurdles, though regulatory and environmental complexities remain. As part of a wider effort to diversify critical mineral supply chains, India is also deepening cooperation with Australia and other partners in the Quadrilateral Security Dialogue.

China’s dominance

China’s dominance in rare earth elements (REEs) has undeniably positioned the country as a key player in the global energy landscape, with approximately 69% of global rare earth mining output and roughly 90% control of global refining/separation capacity. Particularly in the realm of heavy rare earth elements, China’s handling of ≈99% of global processing capacity........

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