India eyes Russian rare earths in bid to cut dependence on China

India's state-backed miner IREL is in discussions with Russian oil producer Rosneft over the potential sourcing of rare earth samples from the Tomtor deposit in Siberia, as New Delhi intensifies efforts to secure critical mineral supplies and reduce its reliance on China, a source familiar with the matter said.

According to the source, the talks are being conducted through government channels. The rare earth samples would undergo processing in Russia before being shipped to India for evaluation, Reuters reports.

India is seeking to assess the mineral composition of the Tomtor deposit before considering broader cooperation, said the source, who requested anonymity because the discussions remain confidential.

IREL has emerged as a key player in India's international efforts to secure access to rare earth resources, which are increasingly vital for the country's industrial and technological ambitions. The push comes amid continued tensions between India and China and concerns over Beijing's dominant position in global rare earth supply chains.

Located in Russia's Yakutia region in eastern Siberia, the Tomtor deposit is regarded as one of the world's largest undeveloped sources of rare earth elements.

The discussions come as the United States maintains sanctions targeting Russia's energy sector, including measures affecting Rosneft and Lukoil, in an effort to increase pressure on Moscow over the war in Ukraine.

Rare earth elements are essential components in the production of permanent magnets used in electric vehicle motors, renewable energy technologies, advanced electronics, and defense systems.

In November, India approved a 73 billion rupee ($770.77 million) program aimed at supporting domestic rare earth magnet manufacturing. Despite possessing the world's third-largest rare earth reserves—estimated at approximately 7.23 million metric tons—the country currently lacks commercial-scale facilities capable of refining and separating the full range of rare earth elements to high-purity levels and does not yet manufacture rare earth magnets domestically.

As part of its broader strategy to secure critical mineral resources, India has been actively exploring overseas opportunities. Reuters reported last year that New Delhi was seeking access to rare earth samples from neighboring Myanmar with assistance from an influential rebel group operating in the country.

IREL has also been engaged in discussions with Japanese and South Korean companies regarding the commercial production of rare earth magnets, Reuters reported previously.

Beyond Russia, the company is exploring rare earth mining opportunities in Argentina, Australia, and Malawi. According to the source, IREL aims to begin domestic production of rare earth magnets between 2029 and 2030.

By Vafa Guliyeva