India Builds Rare-Earth Hub After Trump-Xi Trade Agreement

The Government of India is positioning itself as a central hub in a democratic rare-earth network alongside the United States and Japan to reduce global reliance on China. This strategic move follows a trade agreement reached during a summit in South Korea between U.S. President Donald Trump and Chinese President Xi Jinping, in which China agreed to delay specific export controls on rare-earth materials for one year.

India is utilizing this window to expand its refining and magnet-making capabilities, leveraging domestic monazite and bastnaesite deposits. To build this capacity, the Indian government is offering fiscal incentives for domestic manufacturing. State-owned Indian Rare Earths Ltd. is expanding refining capacity, while the Indian Space Research Organisation is adapting high-purity satellite separation technology for rare-earth processing. In the private sector, Sona Comstar eDrive Private Limited is establishing production lines for rare-earth magnets.

These efforts align with Prime Minister Narendra Modi's Atmanirbhar Bharat agenda. India is further integrating its manufacturing base for batteries and motors with the Quad framework—comprising the U.S., Japan, and Australia—to fast-track technology transfers and joint mineral exploration to increase geopolitical resilience.