New Delhi: New Delhi: China just dropped its export ban on rare earths and other essential minerals—the stuff you need to build chips, EV batteries, defense systems, and just about every new tech gadget out there. That ban started back on October 9, but after a trade deal with the U.S., China hit pause for a year.
It’s not just a win for America. India and the rest of the world get a lift too, and you can already see the effects—semiconductor and EV stocks are jumping.
So, what’s actually been unlocked? We’re talking rare earth elements, lithium battery materials, gallium, germanium, antimony, synthetic diamonds, boron nitrides, and dual-use graphite. Without these, high-tech industries hit a wall. Fighter jets, missile systems, quantum computers, EV batteries—they all need these minerals. People call them ‘the new oil’ for a reason.
China basically owns the space, controlling up to 90 percent of rare earths, 94 percent of gallium, and more than 60 percent of lithium refining.
So how did this shift happen? After Donald Trump and Xi Jinping met in Busan, South Korea, on October 30, the U.S. agreed to a 10 percent cut on tariffs for Chinese imports, froze reciprocal tariffs until 2026, and even backed off blacklisting some Chinese firms. China answered by opening the gate for rare mineral exports. The end result is a steadier global supply chain.
Markets didn’t waste time reacting. Semiconductor ETFs and EV stocks climbed, with companies betting on easier access to the raw materials they need. Prices for lithium, gallium, and the rest should settle down, which means lower costs for manufacturers and a boost to tech and EV profits.
What about India? The country’s been pouring cash into EVs and chipmaking, with big government schemes like the Semiconductor PLI (Rs 76,000 crore) and Battery & EV PLI (Rs 18,000 crore) turning India into a serious manufacturing player. Homegrown giants like Vedanta, Tata Electronics, Tata Motors, M&M, BEL, HAL, and Bharat Dynamics all stand to gain. If India locks in long-term mining deals and ramps up rare earth processing, it could really cement its spot as a global economic force.
