Tapping into Kazakhstan’s rare earths potential
Context
The growing need to shift to renewable energy has pushed India to secure its stable supply of critical minerals. However, the heavy reliance on China for these minerals poses a problem.
Relevance:
GS01 (Minerals)
Dimensions of the Article
- What are Rare Earth Elements?
- Challenges for India
- Why Kazakhstan is a Key Player
- Significance for India
What are Rare Earth Elements?
- They are those elements that have the following characteristics:
- High density.
- High melting point.
- High conductivity.
- High thermal conductance.
- Rare Earth Elements: Scandium, Yttrium and the 15 Lanthanides, lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu).
- They are divided into two groups:
- Light rare earth materials: From Atomic number 57 to 63 (La, Ce, Pr, Nd, Pm, Sm and Eu).
- Heavy rare earth materials: From Atomic number 64 to 71 (Gd, Tb, Dy, Ho, Er, Tm, Yb and Lu).
- Major sources of rare earth materials:
- Bastnaesite (found in carbonatites and related igneous rocks).
- Xenotime (yttrium phosphate)
- Loparite
- Monazite (a phosphate).
- Rare earth elements are vital for renewable energy technologies, electronics, and defence systems.
Challenges for India:
- India’s need: Although India is currently the fifth-largest holder of these minerals, it still depends on China due to the lack of advanced extraction technologies.
- India’s 60% of the rare-earth minerals come from China.
- China factor: China’s history of leveraging its monopoly to disrupt supplies by imposing bans on rare earth technologies and restrictions on antimony—has highlighted the urgency for India to diversify its sources.
- Geopolitics: The ongoing geopolitical tension and reduced supplies from Russia have further exposed the vulnerabilities of concentrated supply chains.
Why Kazakhstan is a Key Player
- Kazakhstan offers a promising alternative for India’s rare earth needs. It holds 15 of the 17 known rare earth elements and possesses advanced extraction technologies. The country has already partnered with Japan, Germany, and the EU for rare earth extraction and is expanding its capabilities in critical minerals like dysprosium, tantalum, and niobium, all essential for renewable energy and nuclear applications.
- India’s ties with Kazakhstan through initiatives like the Connect Central Asia policy and the International North-South Transport Corridor strengthen the potential for collaboration.
- President Kassym-Jomart Tokayev’s emphasis on rare earths as the “new oil” positions Kazakhstan as a strategic ally. The country is also advancing in lithium extraction and manufacturing technologies for clean energy materials, which aligns with India’s renewable energy goals.
Significance for India
- India’s goal of achieving 500 GW of renewable energy by 2030 depends heavily on rare earth elements.
- However, the country lacks the infrastructure to manage the entire rare earth supply chain. Collaborating with Kazakhstan could help India reduce its dependence on China, secure resources closer to home, and boost its clean energy initiatives.
- Moreover, Kazakhstan’s expertise in sustainable extraction and advanced technologies complements India’s plan to scale up mining output by 400% over the next decade. A partnership could also create a regional market for rare earths, mitigating supply chain risks.
Way Forward
- India’s over-reliance on China and geopolitical shifts call for urgent diversification. Collaborating with Kazakhstan can secure rare earth resources while fostering technological advancements.
- Key strategies include:
- Strengthening bilateral ties through the proposed India-Central Asia Rare Earths Forum, which could encourage private sector investment, joint ventures, and training programs.
- Focusing on sustainable extraction practices to ensure long-term environmental and economic benefits.
- Expanding connectivity initiatives like the North-South Transport Corridor to streamline trade.
By addressing its technological gaps and fostering partnerships with resource-rich nations like Kazakhstan, India can build a resilient supply chain for rare earths, ensuring its transition to clean energy remains on track.
