The subcontinent holds largely untapped reserves of critical raw materials, while the European country is expanding its downstream industry.
India and France intend to strengthen their bilateral cooperation. This was announced in a joint statement by the two heads of government, Emmanuel Macron and Narendra Modi. Strategic areas in which collaboration will be intensified include energy, space, artificial intelligence, and defense, as well as the critical minerals required for these technologies—particularly rare earth elements. Both countries aim to coordinate efforts in the exploration, extraction, processing, and recycling of these resources to diversify and strengthen supply chains.
As with many other nations, this initiative is driven by the objective of reducing import dependence—above all on raw materials giant China—amid rising geopolitical tensions. Both India and France have already entered into new partnerships to that end. Their most recent bilateral declaration of intent is also likely to benefit from the recently concluded free trade agreement between India and the European Union.
India Seeks to Better Utilize Its Rare Earth Deposits
The resource-rich subcontinent is already a major producer of raw materials such as coal, iron ore, and chromite, including manganese and baryte, which the European Union classifies as critical to its economy. In the case of rare earths, India possesses considerable reserves, but these have so far been exploited only to a limited extent. Processing capacities are even more constrained.
The Indian government plans to expand this infrastructure, also in order to better supply the country’s rapidly growing high-tech sector. Measures already initiated include tariff exemptions on raw materials and subsidies for downstream production segments, such as the magnet industry.
France Could Become a European Hub for the Rare Earth Industry
France, by contrast, is already a significant player in the rare earth sector. On the Atlantic coast, Solvay operates one of the few rare earth refineries outside China. Given the strategic importance of rare earths, the company intends to substantially expand its capacity.
Another rare earth recycling and refining facility is currently under construction in Lacq, southwestern France. There, the French company Caremag is building a production plant with support from the French and Japanese governments. At the same site, Less Common Metals, formerly British and now part of the U.S. rare earth group USA Rare Earth, is constructing a factory for rare earth metals and alloys. Once completed, this facility, too, would be among the few of its kind outside China.
Photo: Vishal Iyer, Maksym Dragunov via Canva, Montage rawmaterials.net