China's rare earth squeeze may push India-US deal to finish line, but timing key, Pg1.

Key Highlights:

• China has further restricted rare earth exports by adding five elements to its control list, effective November 8.
• US President Trump threatened 100% tariffs on Chinese exports in retaliation to the restrictions.
• India imported 2,270 tonnes of rare earth elements in 2023-24, with 65% originating from China.
• IREL Ltd operates a processing unit with a capacity of over 10,000 tonnes per annum in India.

Detailed Insights:

• Rare earth elements are crucial for various industries, including electronics, automotive, and defense, due to their unique properties.
• China dominates the rare earth market, controlling over 60% of mined production and 90% of processing, giving it significant trade leverage.
• India is exploring ways to increase domestic rare earth production, including auctioning seabed blocks and establishing rare earth theme parks.
• The US is also seeking to reduce reliance on China by exploring domestic rare earth processing and stockpiling deep-sea metals.
• China's restrictions are seen as a move to increase leverage ahead of a potential meeting between Trump and Xi.
• The India-US trade deal could gain momentum due to shared concerns over critical minerals and supply chain security.

Key Concepts Involved:

• Rare Earth Elements: A set of 17 metallic elements with unique properties crucial for various industries.
• Critical Minerals: Minerals essential for economic and technological applications, with supply chain vulnerabilities.
• Trade Leverage: Using control over a commodity to gain an advantage in trade negotiations.