Seeking to lessen its dependence on China for rare earth elements—which are essential for magnet production—Japan is currently negotiating with India.
The discussions focus on a joint exploration for rare earth deposits located in the desert state of Rajasthan, according to a Reuters report.
Joint exploration and deposit
According to India’s Mines Minister, G. Kishan Reddy, three hard rock rare earth deposits have been identified in the western Indian states of Rajasthan and Gujarat.
These deposits contain an estimated 1.29 million metric tons of rare earth oxides. This announcement was made last month.
Building on a preliminary agreement concerning critical minerals signed last year, Japan has shown interest in the Rajasthan deposits.
According to sources directly involved in the decision-making process quoted in the report, Tokyo intends to dispatch experts to the site.
Strategic partnership: technology, investment, and offtake
The Japanese government is reportedly planning a strategic collaboration with the state of Rajasthan in India concerning rare earth elements.
This partnership would involve Japan supplying essential extraction technology and financial investment.
In return, Japan seeks a guaranteed, consistent supply (offtake) of rare earths to be transported to Japan.
This arrangement is particularly critical because the deposits in Rajasthan are hard rock, which necessitate specialised extraction techniques that India currently lacks.
This move reflects Japan’s strategic interest in securing a stable source of these crucial materials.
Japan is actively seeking to diversify its mineral supplies globally, including critical rare earths, as stated by Naoki Kobayashi, deputy director at Japan’s Ministry of Economy, Trade and Industry (METI).
This initiative involves examining various mining projects worldwide to secure resources and reduce reliance on single sources.
However, in response to Reuters inquiries, Kobayashi specifically denied any ongoing discussions regarding corporate partnerships or technology sharing for mineral projects within the Rajasthan region of India.
Japan’s focus remains on broad supply diversification, but specific regional engagements are not currently confirmed.
Impact on supply chain and geopolitical context
India’s strategic push to develop industrial-scale facilities for processing rare earth elements mirrors Japan’s efforts, aiming to significantly reduce reliance on Chinese imports.
This initiative is crucial for securing a domestic supply of high-purity rare earths, which are vital components in modern technology.
A key element of this plan is the potential technological collaboration with Japan, which possesses advanced processing know-how.
This partnership could provide India with the necessary expertise to establish efficient, high-purity rare earth processing capabilities, bolstering its technological independence and supply chain resilience in a critical resource area.
Permanent magnets, which are vital components in electric vehicle motors, wind turbines, fighter jets, and drones, rely on rare earths.
Given that India is the world’s fastest-growing major economy, these applications are particularly critical for the nation.
In an ongoing escalation of a dispute with Tokyo, China recently banned the export of dual-use items—materials with both civilian and military applications—to 20 Japanese entities.
Beijing claims these entities are suppliers to Japan’s military.
This action effectively severs Japanese companies’ access to the seven rare earth elements and related materials currently on China’s dual-use control list, as well as a range of other controlled critical minerals.
Additionally, Japan is reportedly looking to partner with Indian firms to search for lithium, copper, and cobalt in Africa, in addition to rare earths.
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