Minister announces multi-pronged strategy including trade negotiations with Chile and Peru, domestic exploration boost, and startup support for recycling and processing of critical minerals
17 Oct 2025 | 2622 Views | By Autocar Professional Bureau
The government is implementing measures to strengthen the supply of rare earth minerals through multiple strategic initiatives, Commerce and Industry Minister Piyush Goyal announced on Friday.
According to PTI, the approach includes negotiating trade agreements with Chile and Peru, enhancing domestic exploration activities, and supporting startups engaged in recycling ...
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The government is implementing measures to strengthen the supply of rare earth minerals through multiple strategic initiatives, Commerce and Industry Minister Piyush Goyal announced on Friday.
According to PTI, the approach includes negotiating trade agreements with Chile and Peru, enhancing domestic exploration activities, and supporting startups engaged in recycling and processing operations. Critical minerals such as copper, lithium, nickel, and cobalt serve as essential raw materials for industries ranging from electronics manufacturing to defense equipment production, as well as clean energy technologies including electric vehicles and battery manufacturing.
India has completed a trade agreement with Australia and is currently conducting negotiations with Chile and Peru, both countries with significant reserves of these minerals. An Indian delegation is visiting these South American nations for the next round of trade discussions, PTI reported.
The minister noted that China's restrictions on rare earth mineral supply have created disruptions in global supply chains. In response, the government is focusing on increasing domestic exploration and has initiated discussions with startups working on waste recycling for rare earth extraction and establishing processing facilities within India.
Goyal emphasized the importance of supply chain diversification, stating that dependence on a single country for any product creates vulnerabilities, particularly in the current global trade environment. He advised industries to assess their supply chains and ensure multiple sourcing options to maintain resilience, according to PTI.
The government is currently developing guidelines for the Rs 10,000 crore Fund of Funds Scheme for startups announced in the budget, with a focus on manufacturing and high-technology sectors requiring longer-term funding support.
Speaking at an Assocham event, the minister also commented on previous free trade agreements with ASEAN, Japan, and Korea, noting that while these countries have been able to increase exports to India, domestic exporters face challenges in accessing those markets, PTI reported.
Rare earth minerals are critical components in various modern technologies, including smartphones, electric vehicles, wind turbines, and defense systems. They play a crucial role in the transition to clean energy and the growth of advanced manufacturing sectors.