JACKPOT for THIS Muslim country amid Trump's tariff war, discovers mineral reserve around 1.4 million tonnes, requests India to help in...
India has now been extended an open invitation to tap into this potential a move that could dramatically reshape the entire supply chain.
New Delhi: The Xi Jinping-led Chinese government has gained the upper hand over the United States in the ongoing trade war, largely because of its dominance in the rare earth industry. This dominance extends across production, processing, and high-end product manufacturing, effectively giving China control over the entire rare earth supply chain. However, it is important to note that Afghanistan is the only country that can break China's monopoly. Unfortunately, this massive potential of Afghanistan remained untapped so far.
Previously, many surveys had suggested that Afghanistan possesses a massive and largely unexplored reserve of rare earth elements. According to several surveys, the reserves are estimated at around 1.4 million tonnes. India has now been extended an open invitation to tap into this potential a move that could dramatically reshape the entire supply chain.
What are Rare Earth Elements?
Rare earth elements are essential for electric vehicles (EVs), wind turbines, and defense systems. In addition to these, Afghanistan is also believed to hold the world's largest reserves of lithium often referred to as "white gold."
Afghanistan's Foreign Minister meets S. Jaishankar: Key details
- Afghanistan's Foreign Minister, Amir Khan Muttaqi, has invited India to invest in the country's mineral sector.
- Amir Khan Muttaqi appealed to India to help open the Wagah border, describing it as the fastest trade route between the two nations.
- Muttaqi said he had met with External Affairs Minister S. Jaishankar. The two discussed issues related to the economy, trade, and other bilateral matters.
- During this meeting, India announced that its mission in Kabul would now be given embassy status, and that Afghan diplomats based in Kabul would visit New Delhi.
- Muttaqi said that an agreement has been reached between the two countries regarding trade and the economy.
- He highlighted potential areas of cooperation and stated that Afghanistan has formally invited India to invest, particularly in sectors such as minerals, agriculture, and sports.
- The two sides also discussed the Chabahar Port.
China has outpaced the US
It is important to note that Afghanistan's invitation to India to invest in its mineral sector has come at a time when global discussions around this topic are heating up. China currently holds a monopoly over rare earth elements. This is an advantage that has allowed it to outsmart even a superpower like the United States. Beijing has tightened its control over rare earth exports, prompting US President Donald Trump to threaten a 100 percent tariff on Chinese goods starting November 1.
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