In the chaos of war, there’s nothing to stop Chinese firms from ravaging the landscape and extracting the minerals, which end up in China.

Union Minister for Coal and Mines G Kishan Reddy acknowledged India’s past reliance on China for critical rare earth supplies.

A recent assessment by Australian firm Earth Rarest estimated that Australia could supply up to 20 per cent of global demand for neodymium and praseodymium, but warned that a full replacement of Chinese supply across all 17 rare earth elements remains unlikely in the near term.

A diplomatic breakthrough with China is the only short-term fix for easing the shortage of rare-earth magnets, a top executive at one of the largest auto components maker said, as the exports curbs by the East Asian nation chokes the production of electric vehicles.

Companies linked to rare earth minerals surged after the US government announced plans to take a large stake in MP Materials, the operator of the only rare earths mine in the US.

Further bolstering domestic priorities, state-run IREL (India) Limited was directed in June 2025 to suspend a 13-year-old export agreement with Japan, redirecting rare earth supplies for local use to reduce reliance on Chinese imports. Also Read: '2026 Election Will Be Fought To Form A BJP-Led NDA Government': Amit Shah In Kerala