China has assured India that it will meet its rare earth needs after senior officials from both sides held talks, an Indian government source told Reuters. The understanding was reached during discussions on critical mineral supply chains, with Beijing promising to provide India with rare earths used in defense production, renewable energy technologies, and electronics manufacturing. The commitment follows months of negotiations as India seeks to diversify its access to strategic minerals.

Rare earth elements are vital for a wide range of high-tech industries, from missile systems and fighter jets to electric vehicles and wind turbines. China dominates the global market, accounting for most of the world’s processing capacity. The official said India’s concerns over supply security were addressed, with China pledging to ensure stability of exports. The talks also included discussions on pricing, long-term supply contracts, and cooperation on downstream applications.

India is currently working to strengthen its domestic mining and refining capacity but remains heavily dependent on imports to meet growing demand. The official confirmed that while China’s pledge helps address short-term needs, New Delhi will continue seeking alternative supply routes and partnerships with countries including Australia and the United States. Both governments agreed to establish a working group to monitor supply arrangements and explore further cooperation in rare earth technologies.