India in talks with Australia to source rare earth minerals amid Chinese restrictions

India is in talks with Australia to source rare earth minerals amid a shortage due to export restrictions from China, PTI reported on Tuesday.

Malini Dutt, Trade and Investment Commissioner, New South Wales Government, Australia, said that India has the opportunity to take the available blocks.

"They (India and Australia) are talking about rare earth, and there are blocks available. So there is an opportunity for India to take an early-stage block and have tie-ups with a few companies," Dutt said.

Further, both private and public sectors in India have shown interest in copper blocks in Australia, Dutt said on the sidelines of India Energy Storage Week (IESW) 2025, organised by India Energy Storage Alliance (IESA).

"There is a lot of interest around copper as well, given some of the conversations I have had. The interest is both from the private sector and a PSU, which is quite on the hunt for copper (blocks),” Malini said.

“You are aware that there are smelters and companies like Adani that have made a big investment. There is capacity available. There is an abundance of copper. That is one area people are looking at," she added.

The restrictions by China on the export of rare earth elements and related magnets are impacting the auto and white goods sectors in India.

Over 90% of the global processing capacity for magnets, which are used in several sectors including automobiles, home appliances and clean energy, is controlled by China. Crucial materials include samarium, gadolinium, terbium, dysprosium and lutetium, which are essential in electric motors, braking systems, smartphones and missile technology.