Powering the Battlefield: Minerals fueling India’s military

Their ‘rarity’ comes from the fact that they are seldom found in concentrations high enough for economical extraction. These elements are the bedrock of modern technology, from consumer electronics to advanced defense systems.

Rare Earth Elements (REEs) are a group of 17 essential metals that, despite their name, are moderately abundant in the earth’s crust. Their ‘rarity’ comes from the fact that they are seldom found in concentrations high enough for economical extraction. These elements are the bedrock of modern technology, from consumer electronics to advanced defense systems.

What Are Rare Earth Elements (REEs)? 

The 17 REEs include the 15 lanthanides (atomic numbers 57-71), plus Scandium (Sc) and Yttrium (Y). They are broadly classified into two categories:

• Light Rare Earth Elements (LREEs)
• Heavy Rare Earth Elements (HREEs)

India possesses reserves of LREEs like Lanthanum, Cerium, Neodymium, Praseodymium, and Samarium. However, it lacks commercially viable quantities of crucial HREEs such as Dysprosium, Terbium, and Europium, creating a significant import dependency.

The Global Market: China’s Dominance 

The global REE market is heavily concentrated, with China controlling about 70% of global production. This dominance creates significant geopolitical risk for importing nations.

• Reserves: China holds the world’s largest reserves at 44 million tons (38% of the global total), followed by Brazil (18%).
• Production: In 2023, China produced 240,000 tons of REEs, accounting for two-thirds of the global output of 356,000 tons. The US was a distant second, producing 12.2%.
• Exports: China is also the largest exporter, responsible for 64% of the global export value and a staggering 86% of the quantity. Its REE exports grew at a CAGR of 11.6% from 2018 to 2023.

The primary importers are Japan (57% of global import value) and Malaysia (70% of global import quantity). India relies heavily on China, which supplied 81% of India’s REE import value in 2022.

Why REEs are Critical for Technology and Defense

REEs have unique magnetic, luminescent, and catalytic properties that make them indispensable in over 200 products.

The Heart of Modern Technology 

Key minerals like Cobalt, Nickel, and Lithium are essential for EV batteries, while REEs are vital for:

• Mobile phones and computer hard drives
• Electric and hybrid vehicles
• Semiconductors and advanced electronics
• Flatscreen TVs and monitors

For instance, rare earth magnets are far more powerful than conventional magnets, making them essential for miniaturizing and improving the efficiency of high-tech devices.

The Backbone of Modern Defence 

Several REEs are crucial for military applications. The projected usage for 2025 indicates the estimated percentage of total REE demand that will be for a specific element in defense and technology.

• Neodymium (Nd): Used in high-performance magnets for missile guidance, avionics, radar, and sonar systems. Projected usage: 38%.
• Dysprosium (Dy): Provides thermal stability to magnets used in UAV propulsion, radar systems, and stealth coatings. Projected usage: 24%.
• Samarium (Sm): Key for heat-resistant magnets in missile components, electronic countermeasures (ECM), and lasers. Projected usage: 12%.
• Yttrium (Y): Vital for high-temperature alloys and lasers used in stealth coatings, night vision systems, and communication modules. Projected usage: 9%.
• Terbium (Tb): Boosts magnet performance in radar systems and UAV motors. Projected usage: 8%.
• Gadolinium (Gd): Used for radar absorption and specialized optics in sonar, stealth coatings, and mine detection. Projected usage: 5%.
• Europium (Eu): Essential for phosphors in night vision goggles and advanced heads-up displays. Projected usage: 4%.

Surging Demand and Geopolitical Risk

As the world transitions to clean energy, the demand for REEs is set to explode. The International Energy Agency (IEA) projects that global demand could rise from 93 kilotons in 2024 to between 180–202 kilotons by 2050. The share of REEs used in clean technologies is expected to grow from 18% to nearly 40% in the same period.

This rising demand, coupled with a highly concentrated supply chain, shifts energy security risks from fossil fuels to critical minerals. Unlike the diversified oil and gas markets, the REE market can be easily disrupted by geopolitical factors.

India’s Blueprint for REE Self-Reliance 

To counter these risks, India is pursuing a multi-pronged strategy to secure its REE supply chain.

Mitigating Strategies and Their Challenges

Countries generally have three options to reduce supply dependency, each with its own drawbacks:

• Recycling: This process is water- and energy-intensive and requires a robust supply chain to collect e-waste.
• R&D: Investing in alternatives is financially expensive, time-consuming, and offers no guarantee of success.
• Alternative Imports: Sourcing from other countries is often limited by geopolitical constraints.

India’s Strategic Initiatives

India is actively working to overcome these challenges and build a resilient REE ecosystem.

• Boosting Domestic Capabilities: IREL (India) Limited, a state-owned enterprise established in 1950, leads REE extraction and processing. The US recently removed IREL from its ‘Entity List,’ a move that will help strengthen India’s critical mineral supply chain. IREL has also commissioned a Rare Earth Permanent Magnet Plant in Visakhapatnam to produce samarium-cobalt magnets.
• Policy and Partnerships: The government has launched several key initiatives, including establishing Khanij Bidesh India Ltd (KABIL) to acquire overseas mineral assets, joining the US-led Mineral Security Partnership, and amending the Mines and Minerals (Development and Regulation) Act.
• Diversifying Imports: India is exploring new partnerships. Kazakhstan, with its reserves of 15 out of 17 REEs and established processing capacity, presents a promising alternative to diversify REE imports away from China.

(The author of this article is a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com)            

(Disclaimer: The views expressed above are the author’s own and do not reflect those of DNA)

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