India May Become 3rd Pillar In US-Japan Rare Earth Network After Donald Trump-Xi Jinping Deal

India is steadily emerging as a central player in the global rare-earth supply chain, gaining a valuable window of opportunity following the Donald Trump–Xi Jinping summit that temporarily eased China’s export restrictions. According to an analysis, this one-year suspension offers New Delhi crucial breathing space to strengthen its refining, magnet manufacturing, and downstream processing capabilities, areas that have long lagged behind its abundant natural reserves.

India’s coastal regions are rich in monazite, bastnaesite, and other rare-earth minerals found in beach sand deposits. However, despite this resource advantage, the nation’s refining infrastructure and environmental frameworks have been slow to evolve. That trend, analysts say, is now changing.

“With firm political intent and an expanding technological base, India could soon become the third pillar, alongside the United States and Japan, of a democratic rare-earth alliance,” notes the report by Jianli Yang, a research fellow at Harvard University’s Kennedy School of Government.

Following the Trump–Xi meeting in Busan, South Korea, Beijing agreed to delay its export controls for one year as part of a wider trade understanding with Washington. This development, as The Diplomat observes, gives India “a chance to breathe freely” and reposition itself within the global rare-earth landscape.

Strategic Push And Global Partnerships

In June, India unveiled plans to incentivize domestic rare-earth magnet production to reduce dependence on Chinese imports. Companies such as Sona Comstar have begun setting up magnet manufacturing facilities, while state-run Indian Rare Earths Ltd. has been directed to expand refining capacity. The Indian Space Research Organisation (ISRO) is also assisting by adapting its high-purity separation technology, originally designed for satellite components, for rare-earth processing.

Moreover, India is deepening its engagement with international partners under the Quad framework comprising the U.S., Japan, and Australia to accelerate joint exploration, technology sharing, and co-financing projects. Yang highlights that this integration gives India an edge unmatched by smaller producers. “India brings both scale and credibility,” he writes, emphasizing the country’s large manufacturing base that can sustain downstream industries like batteries, motors, and high-performance magnets.

While Australia remains key for mining and Brazil for diversification in the Western Hemisphere, and the U.S. continues to develop production facilities in California and Texas, none can independently offset China’s near-monopoly. “India changes the calculus by aligning supply diversification with real market demand,” Yang argues, suggesting that India can both consume and export what it refines making it a sustainable hub for production and processing.

New Rare-Earth Alliance In Making

India’s rare-earth ambitions align closely with Prime Minister Narendra Modi’s Atmanirbhar Bharat (Self-Reliant India) vision. The report calls on Washington to view India not merely as a defense or semiconductor partner, but as a “cornerstone of a new rare-earth alignment.”

Among the recommendations are co-financing magnet plants through U.S. International Development Finance Corporation loans, establishing reciprocal stockpiles, and fast-tracking technology transfers in refining and waste management to help India bypass the long learning curves that slowed Western nations.

The report further urges that rare-earth cooperation be “embedded into the core agenda” of the Quad, alongside defense and semiconductor collaborations.

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