India has the treasure of Rare Earths, China and America can get tough competition

Rare earth minerals, or rare metals, have now become the focus of a new global power game. These metals are important for high-tech products such as mobile phones, electric cars, missiles and medical equipment. US President Donald Trump launched a trade war against China in 2018 and raised tariffs on most Chinese goods. However, he made a big mistake by ignoring the rare metals.

China has maintained its stronghold for decades
China had maintained its stronghold on the mining and processing of these metals for decades. Despite the tariff increase, the US continued to source these metals from China, causing losses to US companies. In 2025, Trump again targeted China and threatened to impose additional 100% tariffs. However, he later made a U-turn and said he has good relations with Xi Jinping. It’s a classic Trump policy: threaten first, negotiate later.

Rare Earths hold a hidden opportunity for India
Trump’s U-turn policy holds a significant opportunity for India. India has good rare earths mines, but limited processing capacity. The US and Europe are now looking for reliable suppliers other than China, and India can play that role. The Government of India has accelerated plans to increase investment and increase processing capacity. Countries like Japan and South Korea are exploring the possibility of partnering with foundries and refineries in India.

These challenges need to be overcome
If India focuses on mining and processing at the right time, it can become a permanent partner in the global hi-tech supply chain. Moreover, it is an opportunity to put strategic pressure on China. But there are risks too. While mining is available, expertise in processing and magnet manufacturing is still limited. Therefore, immediate steps like investment, technology partnership and recycling should be taken. If India does this in time, it can reap both economic and strategic benefits.