Japan is in advanced discussions with India to jointly explore rare earth deposits in Rajasthan, as Tokyo moves to reduce its dependence on China for critical minerals, according to sources cited by Reuters.
The proposed collaboration could see Japan providing advanced extraction technology and financial support in exchange for a stable supply of rare earth elements — vital inputs for magnet manufacturing and high-tech industries.
Strategic Push to Diversify Supply Chains
Rare earths are essential for producing permanent magnets used in electric vehicle (EV) motors, wind turbines, fighter jets, drones and a range of advanced electronics. China currently dominates global rare earth processing and supply chains, giving it significant geopolitical leverage.
In recent weeks, tensions escalated after China reportedly blocked dual-use exports to 20 Japanese firms, restricting access to seven rare earth elements and other controlled critical minerals. The move underscored Japan’s vulnerability and accelerated efforts to diversify sourcing.
By partnering with India, Japan hopes to build a more resilient and politically secure supply chain.
Rajasthan Deposits Under Assessment
Last month, India’s Mines Minister G. Kishan Reddy announced the identification of three hard rock deposits containing an estimated 1.29 million metric tonnes of rare earth oxides in Rajasthan and Gujarat.
Following a preliminary agreement on cooperation in critical minerals signed last year, Japan has expressed specific interest in the Rajasthan deposits. Sources familiar with the discussions said Tokyo plans to send a team of experts to assess the site, though no timeline has been finalised.
Officials involved in the talks have requested anonymity as the discussions remain confidential. India’s Ministry of Mines and the Japanese embassy have not publicly commented on the development.
Technology Gap and Investment Support
India currently lacks advanced techniques required for large-scale hard rock rare earth extraction. Japan, with its technological expertise and processing capabilities, could bridge this gap.
Under the proposed framework, Japan may provide:
- Extraction and processing technology
- Financial investment for mining operations
- Technical evaluation and feasibility support
In return, Japan would seek assured access to rare earth supplies extracted from the sites.
This partnership would complement India’s broader ambition to build industrial-scale facilities and reduce dependence on Chinese imports of processed rare earth materials.
Broader Critical Minerals Cooperation
Beyond rare earths, Japan is also reportedly exploring partnerships with Indian companies to secure lithium, copper and cobalt assets in Africa — further diversifying its critical mineral portfolio.
For India, the collaboration aligns with its strategy to position itself as an alternative supply hub in the global critical minerals market. For Japan, it represents a calculated step toward insulating key industries from geopolitical shocks.
As competition for critical resources intensifies globally, the India-Japan rare earth partnership could mark a significant shift in the evolving mineral supply chain landscape.