Summary
- PM Modi warned BRICS leaders that critical minerals should not be “weaponised,” a veiled swipe at China’s ongoing rare earth export restrictions.
- China controls 90% of global rare earth output and recently tightened curbs, disrupting India’s EV, defence, and clean energy sectors.
- The BRICS declaration called for secure supply chains, but also upheld states’ rights to regulate mineral access—leaving China’s leverage largely unchecked.
Mineral Monopoly, Global Alarm: India Takes a Stand at BRICS
As rare earth shortages ripple across global supply chains, Indian Prime Minister Narendra Modi issued a stern warning at the BRICS summit in Rio de Janeiro: “Critical minerals must not be weaponised.” The statement, delivered during the summit’s third session on July 7, was a clear geopolitical message aimed at China—the world’s largest producer of rare earths and a country increasingly using its mineral dominance as a tool of influence.
Modi’s comment comes amid deepening concern over China’s restrictions on rare earth exports, which are choking off vital inputs for India’s electric vehicle (EV) push, consumer electronics, and defence manufacturing. “We need to work together to make supply chains for critical minerals and technology secure and reliable,” Modi emphasized, underscoring the growing divide within BRICS on resource sovereignty versus economic coercion.
Prime Minister @narendramodi addressed the #BRICS Session on 'Strengthening Multilateralism, Economic-Financial Matters, and Artificial Intelligence'
— PIB India (@PIB_India) July 7, 2025
PM emphasized the need for collective efforts to make supply chains for critical minerals and technology secure and reliable. He… pic.twitter.com/q2tTVcBi4X
China’s Tightening Grip: A Global Supply Chain Chokehold
- China controls ~90% of global rare earth mineral production.
- Export curbs since April 2024 have disrupted supplies of gallium, germanium, graphite, and rare earth magnets.
- India’s EV and battery sectors are facing delays and uncertainty.
The tensions began escalating in early 2023 when China introduced export controls on gallium and germanium, two minerals critical for semiconductors and satellite systems. By late 2024, graphite was added to the restricted list—affecting India’s clean energy and battery industries. Most recently, in April 2025, China imposed curbs on rare earth magnets, triggering a new wave of supply chain shock.
According to India’s Ministry of External Affairs (MEA), diplomatic outreach to Beijing is ongoing. “We remain in touch with the Chinese side to bring predictability to the supply chain,” said MEA spokesperson Randhir Jaiswal. But predictability seems elusive when 90% of global production rests with one player—and when that player is also India’s foremost strategic rival.
Think tank Global Trade Research Initiative noted that Beijing has “increasingly used trade restrictions to undercut India’s industrial ambitions.” The result: a direct hit on India’s capacity to scale up EV manufacturing, solar panel production, and next-gen defence equipment.
BRICS Unity Tested: Sovereignty vs. Strategic Supply Chains
- BRICS declaration supports secure and diversified mineral supply chains.
- But also defends nations’ sovereign right to regulate resources.
- Xi Jinping skipped summit; Premier Li Qiang led China’s delegation.
The BRICS bloc—now expanded to include new members from the Global South—attempted a delicate balancing act in its summit declaration. On one hand, it acknowledged the urgent need for diversified and reliable supply chains. On the other, it reaffirmed every nation’s right to control access to its mineral wealth for public policy objectives.
This diplomatic tightrope allows China to maintain its current course without explicit criticism, even as nations like India and Brazil grapple with the fallout from restricted access. Modi’s remarks thus stood out as the summit’s most forceful articulation of mineral dependency as a geopolitical risk.
The absence of Chinese President Xi Jinping—his first since taking office in 2013—also cast a shadow over the summit. Premier Li Qiang, who represented China, made no public remarks addressing the export curbs. That silence reinforced the perception that China is unlikely to backtrack on its resource strategy.
India’s Critical Mineral Crisis: What’s at Stake
- India’s EV targets for 2030 rely heavily on lithium, graphite, and rare earth imports.
- Defence manufacturing also impacted by shortage of magnets and semiconductors.
- Domestic exploration and alliances with Australia, Argentina, and Africa now prioritized.
India’s clean tech and defence dreams are now tightly linked to how it navigates the global scramble for critical minerals. Domestic production of these minerals remains nascent, forcing reliance on imports from China and a few other countries. The consequences of delay are real: battery costs are rising, timelines for EV launches are slipping, and key defence projects are experiencing procurement bottlenecks.
To counterbalance China’s dominance, India has ramped up bilateral talks with mineral-rich nations like Australia, Argentina, and several African partners. It’s also launched the Khanij Bidesh India Ltd. (KABIL) initiative to secure long-term access to overseas mines. But building such alliances takes time—and China’s moves are disrupting markets now.
Modi’s intervention at BRICS signals that India is not just negotiating quietly anymore—it’s willing to bring resource security into the core of multilateral diplomacy.
From Rare Earth to Rare Unity: Will BRICS Deliver?
Prime Minister Modi’s blunt appeal may mark a shift in how BRICS handles internal tensions. For a bloc built on the promise of South-South solidarity, the summit’s inability to openly confront China’s economic coercion exposes its limits. India’s call for “secure and reliable” supply chains echoes a growing chorus from emerging economies that are tired of mineral dependence morphing into strategic vulnerability.
Whether BRICS can evolve from a talk shop into a mechanism that enforces fair resource sharing remains to be seen. For now, the message from Rio is clear: rare earths are the new oil—and whoever controls them controls the pace of the 21st-century industrial revolution.
India just rang the alarm bell. Who’s listening?
