Japan is in discussions with India to jointly explore rare earth deposits in Rajasthan as Tokyo looks to reduce its dependence on China for critical minerals used in magnet manufacturing, Reuters reported, citing two people familiar with the matter.
Last month, Union minister G. Kishan Reddy said three hard rock rare earth deposits containing 1.29 million metric tons of rare earth oxides had been identified in Rajasthan and Gujarat.
The talks follow a preliminary pact on critical minerals signed between Japan and India last year. According to sources directly involved in the decision-making, Tokyo has expressed interest in the Rajasthan deposits and plans to send experts to the site.
They declined to be named as the discussions are not public. The sources did not specify when the experts would visit.
In Rajasthan, the Japanese government would be looking to provide extraction technology and funding in exchange for a stable offtake of rare earth supplies to Japan, the sources told Reuters. They added that hard rock deposits require specialised extraction techniques that India does not currently have.
Naoki Kobayashi, deputy director at Japan’s Ministry of Economy, Trade and Industry (METI), told Reuters that Japan is examining mining projects worldwide to diversify mineral supplies, including rare earths. However, Kobayashi denied any discussion on specific corporate partnerships or technology provision in Rajasthan.
Like Japan, India wants to reduce dependence on Chinese imports by developing industrial-scale facilities to process rare earth elements to high purity levels, again with Japan potentially offering the necessary technology.
Rare earths are essential for permanent magnets used in electric vehicle motors, wind turbines, fighter jets and drones — sectors seen as critical to India’s growth.
The development comes amid rising tensions between Japan and China. Last week, China prohibited exports of dual-use items –materials that can serve both civilian and military purposes — to 20 Japanese entities that Beijing says supply Japan’s military.
The move effectively cuts Japanese companies off from seven rare earth elements and associated materials currently on China’s dual-use control list, along with other controlled critical minerals.
Apart from rare earths, Japan is seeking collaboration with Indian companies to explore lithium, copper and cobalt in Africa, one of the sources said.
