Japan and India have begun discussions on jointly developing newly discovered rare earth deposits in Rajasthan, marking a potentially significant step in the two countries’ efforts to reduce dependence on China for critical minerals that underpin the global clean energy, semiconductor and defence industries.
The talks follow India’s announcement that it has identified three hard-rock rare earth deposits in Rajasthan and Gujarat containing an estimated 1.29 million tonnes of rare earth oxides (REOs), one of the largest such discoveries in the country in recent years. The deposits were disclosed by Union Mines Minister G. Kishan Reddy as part of the government’s broader strategy to strengthen domestic critical mineral security.
The proposed cooperation builds on a critical minerals partnership signed between India and Japan in 2024 and reflects growing international efforts to diversify supply chains away from China, which dominates the global rare earth industry.
According to industry estimates, China controls around 60 per cent of global rare earth mine production, approximately 90 per cent of rare earth separation and processing capacity, and more than 90 per cent of rare earth magnet manufacturing. This dominance has given Beijing considerable influence over supply chains that support electric vehicles, renewable energy systems, advanced electronics, artificial intelligence hardware and military technologies.
China controls rare earth material supplies to Japan
Japan, one of the world’s largest consumers of rare earth materials, has been actively seeking alternative suppliers since 2010, when China restricted rare earth exports to the country during a diplomatic dispute in the East China Sea. More recently, Beijing tightened export controls on several strategic minerals and dual-use technologies, reinforcing concerns among major industrial economies about supply-chain vulnerabilities.
Under the discussions, Japan is expected to send technical teams and geological experts to assess the newly identified Indian deposits. Japanese agencies and financial institutions are also understood to be evaluating mechanisms to support exploration and eventual development of the reserves.
The attraction for Tokyo lies not only in the size of the deposits but also in India’s growing importance as a strategic partner in the Indo-Pacific and as a potential long-term supplier of critical minerals outside Chinese-controlled supply chains.
Japan provides processing technology
For India, Japanese participation could help overcome one of the biggest hurdles facing the country’s rare earth ambitions: processing technology.
Unlike beach sand monazite deposits traditionally mined in India, the newly identified reserves are hard-rock deposits that require sophisticated extraction, beneficiation and separation technologies. Japan is regarded as one of the few countries outside China with advanced expertise in rare earth processing and magnet manufacturing.
Industry experts note that discovering rare earth deposits is only the first step. Converting ore into commercially usable rare earth oxides and high-performance magnets requires complex chemical processing facilities, significant capital investment and years of technical development.
The discussions also align with India’s National Critical Minerals Mission, launched to accelerate exploration, mining and value addition in minerals essential for emerging technologies. India possesses the world’s fifth-largest rare earth reserves, estimated at nearly 6.9 million tonnes, yet remains heavily dependent on imports for processed rare earth materials and magnets.
According to industry estimates, India imports between 80 and 90 per cent of its rare earth magnets and related materials from China, exposing sectors such as electric vehicles, electronics and renewable energy to supply disruptions.
Joint search for lithium, copper, cobalt from Africa, Latin America and Australia
Beyond Rajasthan, India and Japan are also exploring broader cooperation in overseas mineral projects. Reports indicate the two countries are examining opportunities to jointly secure supplies of lithium, copper, cobalt and other strategic minerals from Africa, Latin America and Australia.
The initiative comes amid a wider geopolitical contest over critical minerals. The United States, European Union, Japan, Australia and India have all introduced policies and funding programmes designed to build alternative supply chains and reduce reliance on Chinese processing facilities.
For Japan, securing stable access to rare earths has become increasingly important as the country accelerates investment in electric vehicles, batteries, semiconductors and defence technologies. For India, the partnership offers an opportunity to move beyond being merely a holder of mineral resources and become a significant player in global critical mineral value chains.
If the discussions translate into concrete investment and technology partnerships, the Rajasthan deposits could emerge as one of the most important non-Chinese rare earth developments in the Indo-Pacific region over the next decade, strengthening both countries’ economic security and strategic autonomy in an increasingly competitive global minerals market.