Rare Earth Elements (REEs) Overview
- REEs are a group of 17 elements, crucial for various industries, including semiconductor fabrication, defense, and renewable energy.
- The rarity lies in the difficulty of extraction and refining rather than their abundance.
- Major REE-producing countries: China, India, Myanmar, Japan, Australia, North Korea.
China’s Export Restrictions
- China has imposed export controls on key REEs: dysprosium, gadolinium, lutetium, samarium, scandium, terbium, and yttrium.
- These elements are vital for high-tech industries, including defense equipment, nuclear reactors, electronics, and aerospace.
- The restrictions don’t constitute a full ban but require permits, potentially delaying global supply chains.
- China dominates global REE refining, giving it significant leverage over international markets.
Impact on India
- India holds 6% of global REE deposits but lacks extensive refining infrastructure. – Current domestic extraction focuses on light REEs, particularly monazite from Kerala’s beach sands.
- Advanced manufacturing in India still depends on imports from China and Japan.
- Japan has built strategic REE stockpiles to insulate from supply shocks.
- Environmental concerns remain a major challenge for India’s REE mining and refining expansion.
- India’s semiconductor and defense sectors might face indirect impacts due to global supply chain disruptions.