India widens hunt for rare earths — eyes Chile, Peru trade deals to ease supply

New Delhi: India is working on various measures to improve supply of rare earth minerals, including negotiating free trade agreements with Chile and Peru, promoting domestic exploration, and engaging startups in recycling and processing, commerce and industry minister Piyush Goyal said on Friday.

Speaking at an event organised by industry association Assocham, the minister also urged domestic companies to diversify their supply chains and to support each other like Japanese and Korean companies do amid increasing weaponisation of trade and supply chains.

"Why do Japan and Korea buy only Japanese or Korean steel? Why can a steel mill from India not supply there even at $100 a ton less than their local cost? Not because the government is stopping them. The industry will buy only from their own brother industries," Goyal said. "Here, there's no such spirit; one would resort to import if even 10 paise can be saved."


He noted that the government is looking to source rare earth minerals from Australia, Chile and Peru, which have their reserves, as the main supplier, China has imposed restrictions, disrupting the supply chains world over.

An Indian team is visiting these two South American countries for the next round of trade talks. India already has implemented a trade pact with Australia.

"In our own country, we are looking at increasing explorations," Goyal said.

The minister also said he has been talking to startups both for recycling waste "from which we can extract rare earths" and "to see if we can create the processing facility in India, which is currently concentrated in one geography."