Rare Earths: A Strategic Partnership Between India and Kazakhstan

Introduction – Rare Earths

The world’s transition to cleaner energy and advanced technology has amplified the demand for rare earth elements (REEs)—the building blocks of high-tech industries such as renewable energy, defence, and electronics. India, the third-largest carbon emitter, has set ambitious renewable energy goals, increasing its reliance on these critical minerals. Despite being the fifth-largest holder of rare earth resources globally, India depends heavily on imports from China due to technological and infrastructure challenges. Meanwhile, Kazakhstan, rich in rare earth resources and strategically located, offers a promising alternative for India to meet its critical mineral needs. This essay explores the potential of an india and kazakhstan partnership in rare earths, emphasising mutual benefits, challenges, and strategies for enhanced collaboration.

Why Rare Earths Matter

Rare earths are a group of 17 elements crucial for manufacturing high-tech products, including electric vehicles, wind turbines, smartphones, and military hardware. Although these elements are relatively abundant in the Earth’s crust, economically viable deposits are rare, and their extraction is technologically challenging. China dominates this sector, producing 70% of the global supply and controlling over one-third of known reserves. This monopoly poses supply chain risks for countries like India that rely on rare earths to achieve green energy targets and strengthen technological industries.

India’s Rare Earths Landscape

India has significant rare earth deposits, particularly in beach placers containing monazite and in inland deposits like xenotime. However, limited technological capability and environmental regulations have constrained large-scale extraction. Most of India’s rare earth production focuses on light rare earth elements (LREEs), while heavy rare earth elements (HREEs), critical for high-performance technologies, remain underexploited. As India pursues a 500 GW renewable energy capacity by 2030, the gap between domestic supply and demand is widening, making the search for reliable international partners imperative.

Kazakhstan’s Rare Earth Potential

Kazakhstan stands out as a promising partner for India due to its vast natural resources, including rare earth elements like dysprosium, terbium, beryllium, scandium, tantalum, and niobium. These minerals are critical for renewable energy and defence technologies. The country’s President Kassym-Jomart Tokayev has described rare earths as the “new oil” for Kazakhstan’s economy, signalling strong governmental support for this sector. Additionally, Kazakhstan hosts one of the world’s three full-cycle beryllium and scandium factories and has advanced metallurgical plants producing key materials like gallium and indium.

Kazakhstan’s focus on diversifying its economy aligns well with India’s need for alternative supply chains. The International North-South Transport Corridor and India’s ‘Connect Central Asia’ policy enhance the feasibility of closer economic ties between the two nations.

The China Factor

China’s dominance in rare earths poses significant risks for global supply chain security. India sources approximately 60% of its rare earth imports from China, leaving it vulnerable to supply disruptions due to geopolitical tensions. Recent actions by China, such as halting the supply of antimony and banning technologies for rare earth extraction, highlight the urgency of diversification. A partnership with Kazakhstan offers India a strategic opportunity to reduce its dependency on China and build a more resilient supply chain.

Opportunities for Collaboration

By working together on rare earths, India and Kazakhstan can build a brighter future. They can help each other with technology, trade, and training while taking care of the environment.

Exploring and Mining Together: India and Kazakhstan can team up to find and extract rare earths. Rare earths are special materials needed for making advanced technologies. To do this, they can use modern tools like portable X-ray machines and laser devices that help find minerals faster and safer. Working together will also allow them to share the cost of building mining facilities. This teamwork can make sure that mining is done in a way that doesn’t harm the environment while also meeting the needs of both countries.

Sharing Knowledge in Processing: Kazakhstan has experience in mining, while India has skills in turning raw materials into useful products. By sharing their knowledge, they can help each other improve. They can work together to create better methods to process rare earths, making the process faster and cheaper. Recycling old devices to get rare earths can also be a focus. This way, they can save resources and protect the planet by reusing materials instead of always digging for new ones.

Building a Strong Supply Chain: India and Kazakhstan can agree to share rare earths through trade deals. This would make sure India gets the materials it needs and Kazakhstan finds new customers for its resources. Since Kazakhstan is not far from India, transportation costs can be lower. By building a strong supply chain, both countries can reduce their reliance on other nations, like China, for these valuable materials.

Training Experts for the Future: Both countries need skilled people to explore, mine, and process rare earths. They can organise exchange programmes where Indian and Kazakh scientists and engineers learn from each other. These programmes will help create experts who can develop better mining and processing methods. Learning together will also build stronger connections between the two countries.

Focusing on Green Practices: Mining and processing rare earths can harm the environment. India and Kazakhstan can lead the way by using clean and safe technologies. They can focus on reducing waste and protecting land and water near mining sites. By choosing sustainable methods, they can set an example for other countries and show that development can happen without damaging the planet.

A partnership of the above nature will strengthen their economies and reduce their dependence on other nations for rare earths. Together, they can show the world that teamwork and sustainability are the keys to success.

Challenges to Address

India and Kazakhstan face some challenges as they work together on rare earths. One big issue is transportation. Since there aren’t direct routes between the two countries, moving materials and equipment can be costly and slow. Projects like the International North-South Transport Corridor could help by creating better connections.

Another challenge is technology. Both nations need advanced machines and methods to extract and process rare earths, especially the heavy ones, called HREEs. Investing in these technologies is necessary to make their collaboration successful.

Geopolitics also plays a role. Kazakhstan is part of China’s Belt and Road Initiative (BRI), a project that connects many countries. India must carefully manage its partnership with Kazakhstan to avoid any misunderstandings or conflicts with China.

Finally, rare earth mining can harm the environment. It produces dangerous waste and pollution. India and Kazakhstan need to use clean and safe methods to protect nature and the people living near mining areas. By solving these challenges, they can build a strong and successful partnership.

Mutual Benefits of the Partnership

India and Kazakhstan working together in the rare earths sector can bring many benefits. First, their joint efforts can help both economies grow. By starting mining projects and signing trade deals, they can create more jobs, increase industrial output, and boost their countries’ wealth.

Next, the partnership can lead to major technological advancements. When scientists and researchers from both nations collaborate, they can develop better ways to process rare earths. This can make India and Kazakhstan important players in the global rare earth market.

Another big benefit is strategic autonomy. By relying less on China for rare earth supplies, both countries can strengthen their independence in key areas like defence, renewable energy, and advanced electronics. This makes their industries and economies more secure.

Lastly, this partnership can improve overall relations between India and Kazakhstan. Success in the rare earths sector can open the door for further cooperation in other fields, like education, trade, and science. Together, they can achieve more and build a lasting friendship.

The Way Forward

To fully benefit from their rare earth partnership, India and Kazakhstan should take key steps. They can create the ‘India-Central Asia Rare Earths Forum’ to discuss and solve challenges like transportation, technology gaps, and regulations. Encouraging private companies to invest through supportive policies and incentives can bring in more resources and innovation. Additionally, joining global groups like the International Rare Earth Association will help them adopt sustainable practices and collaborate with other countries. These actions will strengthen their partnership, make rare earth development smoother, and ensure long-term success for both nations.

Conclusion

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