Informist New Delhi

India's free trade agreements with Chile and Peru will help reduce reliance on China for rare earth minerals, which are crucial for the automobile, technology, defence and aerospace sectors, Commerce Secretary Sunil Barthwal said on Tuesday. 

Peru and Chile, has significant geological potential for critical minerals. These minerals are used for the production of EV batteries, renewable energy technologies, and clean energy applications. Currently, China accounts for 60%-70% of the global supply chain of the rare earth minerals. Restrictions imposed by China in April on the exports of rare earth minerals have caused a severe shortage and adversely impacted the production of many automobile facilities around the world. 

To tackle Chinese dominance on rare earths, FM Nirmala Sitharaman had earlier this month held talks with Peru's Foreign Minister Elmer Schialer Salcedo and expressed India's interest in importing the critical minerals from the country.