Japan and India in Talks for Joint Rare Earth Mineral Exploration
Japan and India are in active discussions for a bilateral cooperation framework on rare earth mineral exploration, with both governments seeking to reduce strategic dependence on China-controlled supply chains
The talks build on a Memorandum of Cooperation signed between India's Ministry of Mines and Japan's Ministry of Economy, Trade and Industry (METI), and expand on existing critical minerals cooperation under the India-Japan Special Strategic and Global Partnership
Japan is already active in India's rare earth sector through Toyota Tsusho's joint venture with Indian Rare Earths Limited (IREL) in Andhra Pradesh, which processes rare earth oxides for export to Japan
The cooperation is expected to cover exploration, mining, and processing of rare earth elements (REEs) in India, leveraging India's significant but underutilised reserves
This initiative aligns with India's National Critical Mineral Mission (NCMM), launched in early 2025, which targets domestic exploration and overseas asset acquisition across 30 critical minerals
Rare Earth Elements: Strategic Importance and China's Dominance
Rare earth elements (REEs) are a group of 17 metallic elements — including lanthanum, cerium, neodymium, dysprosium, and yttrium — that are critical inputs for electric vehicles, wind turbines, consumer electronics, defence systems (missile guidance, radar), and advanced manufacturing. Despite the name, most REEs are not geologically rare but are economically concentrated due to China's dominance in mining and processing.
The Japan-India exploration talks are a direct response to China's REE dominance; both countries see each other as complementary — India has reserves and mineral processing capacity potential, while Japan has technology, capital, and urgent strategic need.
India's National Critical Mineral Mission (NCMM) and Mineral Diplomacy
India's National Critical Mineral Mission (NCMM), approved by the Cabinet in early 2025, is a ₹16,300-crore programme targeting end-to-end development of domestic and overseas critical mineral supply chains. It identifies 30 critical minerals including REEs, lithium, cobalt, nickel, graphite, titanium, and vanadium.
Key Details
- NCMM outlay: ₹16,300 crore (FY25–31) + ₹18,000 crore expected investments
- Domestic exploration targets: Geological Survey of India (GSI) to execute ~1,200 exploration projects
- Overseas acquisitions: PSU-led (26 mines) and private (24 mines) targets
- India's import dependence: 90% for REEs; 80% for lithium and cobalt; 85%+ for nickel
- China's share of India's critical mineral imports has risen dramatically: lithium imports from China up 921%, nickel up 137% in 2024
- Key implementing agencies: Ministry of Mines, KABIL (Khanij Bidesh India Limited — PSU for overseas mineral assets), GSI
- KABIL has signed MoUs with Australia, Argentina, Chile for lithium and cobalt; Japan partnership adds REE focus
The Japan exploration talks represent a key pillar of India's minerals diplomacy strategy — securing supply through bilateral partnerships alongside domestic exploration, rather than relying on the open market dominated by China.
India-Japan Special Strategic and Global Partnership
India and Japan elevated their relationship to a "Special Strategic and Global Partnership" in 2014 under PM Modi and PM Abe. The partnership has expanded across infrastructure (Japan's Official Development Assistance to India — the largest bilateral ODA programme), defence, digital technology, clean energy, and now critical minerals.
The rare earth exploration talks fit squarely within the broadening India-Japan strategic partnership — moving from infrastructure and defence into supply chain resilience as the new frontier of economic security cooperation.
- China's REE processing share: ~90% of global capacity
- China's REE production share: ~60% of global production
- India's REE reserves: ~6.9 million tonnes (~8% of global reserves)
- India's REE mining share: <1% of global production
- NCMM budget: ₹16,300 crore (FY25–31)
- India's REE import dependence: ~90%
- Toyota Tsusho-IREL JV in Andhra Pradesh: Processes thousands of tonnes of REE oxides annually
- India-Japan CEPA: In force since 2011
- Inaugural India-Japan Economic Security Dialogue: November 2024
- Quad critical minerals initiative: Mapping supply chains, targeting diversification from China
- China's 2023–24 export controls: Gallium, germanium, graphite, and REE-related compounds
- India's monazite coastal placer deposits regulated under Atomic Energy Act (REEs co-located with thorium)