Rare earth components: China’s grip on critical metals and why the world depends on them – Explained

India’s ambitions in electronics, electrical automobiles (EVs), and clear vitality could face critical challenges attributable to its restricted home manufacturing of uncommon earth components (REEs), regardless of holding sizable reserves. China continues to dominate the world REE provide chain, controlling over 90 per cent of the world’s processing and magnet-making capability, reported ET.Rare earths, 17 components with distinctive magnetic, luminescent, and electrochemical properties, are important for a variety of excessive-tech and inexperienced vitality merchandise. From everlasting magnets in EV motors and wind generators to phosphors in LED lights and information storage in MRI machines, these supplies are foundational to subsequent-technology applied sciences.Here’s how particular person components are used:

Other REEs, Scandium, Holmium, Thulium, Lutetium, Ytterbium, Promethium, are very important in specialised lasers, sensors, digital units, and medical imaging methods.According to ET, China alone accounts for practically 70 per cent of world uncommon earth mining, with international locations like the US (12 per cent), Myanmar (10 per cent), and Australia (8 per cent) following distantly. India, although possessing round 6–7 million metric tonnes of reserves, about 6–7 per cent of the world complete, contributes lower than 1 per cent to the world’s annual output.This creates a significant vulnerability for Indian producers. Any disruption or restriction in provide from China might severely impression manufacturing strains, particularly in EVs, smartphones, and defence methods. As per ET, this provides Beijing immense leverage.While the US has tried constructing its personal capability in gentle uncommon earths like neodymium and cerium, China stays the major supply for many critical components, together with dysprosium, terbium, and yttrium.