India, five central Asian countries express interest in joint rare earth mineral exploration amid Chinese restrictions

India and five central Asian countries have expressed interest in joint exploration of rare earths and critical minerals, they said in a joint statement on Friday after the fourth meeting of the India-Central Asia Dialogue, held in New Delhi.

"The Sides expressed interest in joint exploration of rare earth and critical minerals. Appreciating the outcomes of the first India-Central Asia Rare Earth Forum held in September 2024 in New Delhi, they called upon the relevant authorities to hold the second India-Central Asia Rare Earth Forum meeting at the earliest convenience. The Ministers also encouraged exchange of delegations to explore new areas of cooperation in critical minerals," said the Ministry of External Affairs in a statement.

The 4th meeting of the India-Central Asia Dialogue was held in New Delhi on 6 June 2025. Ministers of Foreign Affairs of the Republic of Kazakhstan, the Kyrgyz Republic, the Republic of Tajikistan, Turkmenistan and the Republic of Uzbekistan took part in the meeting.

At present, China mines about 70% of the world's rare earths but has a virtual monopoly on refining and processing.

China had earlier, on April 4, imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons like national security and international obligations such as non-proliferation.

Although these curbs are not a complete ban on exports for the auto sector, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay in the supply process.

The report also mentioned that the Indian government is aware of the growing risks.

According to a Reuters report on Friday, India is in discussions with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, Indian government is likely to offer fiscal incentives to promote domestic production of these crucial components.

Contrary to their name, rare earth elements, especially the lighter ones, are not actually rare in the Earth's crust. But they are spread out in low concentrations, which makes extraction and processing difficult.