Japan is negotiating with India to reduce its dependence on China in the production of rare earths, which are necessary for magnets.
According to a Reuters article, the discussions are centered around a joint search for rare earths deposits in Rajasthan’s desert.
Joint exploration of deposit
India’s Mines minister, G. Kishan Reddy has identified three hard-rock rare earth deposits in western Indian states Rajasthan and Gujarat.
The estimated amount of rare earth oxides in these deposits is 1.29 millions metric tonnes. The announcement of this was made in the last month.
Japan is interested in Rajasthan’s deposits, based on an agreement signed last year concerning the critical minerals.
Tokyo plans to send experts on the ground, according to those directly involved in decision making.
Technology, Investment, and Offtake: Strategic Partnership
According to reports, the Japanese government plans a collaboration strategy with Rajasthan state in India regarding rare earth elements.
The partnership will involve Japan providing essential extraction technology as well as financial investment.
Japan wants a consistent and guaranteed supply of rare earths (offtake).
The arrangement is critical, because deposits in Rajasthan consist of hard rocks that require specialised techniques for extraction. India does not have these.
The move is a reflection of Japan’s interest to secure a reliable source for these vital materials.
Naoki Kobiashi, deputy director of Japan’s Ministry of Economy, Trade and Industry, said that Japan actively seeks to diversify the mineral supply globally, which includes critical rare earths.
The initiative examines various mining projects around the world to reduce dependence on a single source and secure resources.
In response to Reuters’ inquiries, Kobayashi denied specifically any ongoing discussions about corporate partnerships or sharing technology for mineral project within Rajasthan, India.
Japan is still focused on diversifying its supply, although specific engagements in regional markets are yet to be confirmed.
Effect on the supply chain and in a geopolitical setting
India is following Japan in its efforts to reduce the reliance on Chinese imports by developing industrial scale facilities to process rare earth elements.
The initiative will ensure a reliable supply of rare earths in the United States, which is vital for modern technology.
This plan includes a potential collaboration in technology with Japan. Japan has advanced processing expertise.
The partnership will provide India the expertise it needs to develop high-purity, efficient rare earth processing, and strengthen its supply chain.
Rare earths are essential for permanent magnets that can be found in motors of electric vehicles, wind turbines and fighter jets.
These applications are especially important for India, which is currently the fastest growing major economy in the world.
China has recently prohibited the export to 20 Japanese companies of items with dual use, i.e. materials with civilian as well as military uses.
Beijing says these companies are Japanese military suppliers.
The action will effectively cut off Japanese access to seven rare earths and other materials that are currently listed on China’s dual use control list. It also affects a number of controlled critical minerals.
In addition, Japan, along with Indian companies, is looking for a partnership to find lithium, cobalt, and copper in Africa.
The ICD published this article: China’s ban on rare earth minerals spurs Japan and India partnership on vital minerals.
