Mining the Future

In an era where Artificial Intelligence (AI) is rapidly gaining significance, an often-overlooked yet crucial element lies at the heart of this technological revolution: rare earth metals (REMs) consisting of 17 elements, including neodymium, dysprosium, and yttrium which play a vital role in the development of AI-driven technologies, from advanced semiconductors to powerful computing systems. As India and France deepen their collaboration in AI, following the recently concluded India-France AI Summit, the significance of securing REM supply chains has never been more critical. The partnership aims to bolster AI capabilities across various sectors, but its success hinges on the accessibility of these indispensable elements.

The AI-REM Connection

1. AI Hardware and Rare Earths

AI systems rely heavily on powerful computing hardware, such as GPUs (Graphics Processing Units) and TPUs (Tensor Processing Units), which are used for training and running AI models. These hardware components require rare earth elements to function efficiently. For example, neodymium and dysprosium are used in the production of high-performance permanent magnets, which are critical for the motors and actuators in hard drives, robotics, and other AI-driven devices. These magnets enable the precise control and high-speed operation necessary for AI applications, such as autonomous vehicles and industrial automation.

2. Data Centres and Energy Efficiency

Data centres, which are the backbone of AI infrastructure, consume vast amounts of energy. Rare earth elements are used in the production of energy-efficient technologies, such as high-performance magnets in wind turbines and electric motors, which help reduce the carbon footprint of data centres. For instance, neodymium-iron-boron (NdFeB) magnets are used in wind turbines to generate renewable energy, which powers data centres. Additionally, REEs like terbium and europium are used in energy-efficient LED lighting, which is widely used in data centres to reduce energy consumption.

India and France: A Strategic AI Collaboration

The India-France AI Summit, held recently, marks a significant milestone in bilateral technological cooperation. Both nations emphasised the need for ethical AI development, data security, and sustainable technology deployment. However, a crucial underlying aspect of AI's advancement is its dependency on hardware, which, in turn, relies on rare earth metals. France, a key player in AI research and quantum computing, and India, an emerging AI powerhouse with a booming semiconductor industry, recognise the need to secure REM supply chains.

Given that China dominates over 60 per cent of global REM production, India and France have begun discussions on diversifying their sources. India, rich in monazite sands containing thorium and other rare earth elements, has the potential to emerge as a significant player in the REM supply chain. France, with its expertise in advanced material processing and recycling technologies, can contribute to developing sustainable extraction and refinement methods. Their collaboration could not only reduce dependence on China but also promote environmentally responsible sourcing of REMs.

The Geopolitical and Economic Imperative

The AI race is as much about software and algorithms as it is about the physical infrastructure supporting them. Nations that control REM resources wield significant geopolitical leverage. The United States and the European Union have already started diversifying their REM sources, and India and France must follow suit. India’s recent policy initiatives, such as the National Mineral Policy and the push for self-reliance in strategic minerals, align well with the objectives of the India-France AI partnership. Furthermore, the economic implications of securing rare earth supplies extend beyond AI. The automotive industry, renewable energy sector, and defence technologies all rely heavily on these materials. With AI-driven automation and smart manufacturing becoming increasingly prevalent, ensuring a steady REM supply is not just a technological necessity but an economic imperative.

Challenges and the Path Forward

While India and France are keen to collaborate on AI-driven solutions, challenges remain in REM extraction and processing. The mining of rare earth metals is often environmentally detrimental, leading to radioactive waste and pollution. However, advancements in recycling technologies and alternative materials could mitigate these concerns. France’s leadership in clean energy and India's push for sustainable mining practices offer promising avenues for responsible REM utilisation. Moreover, AI itself could play a role in optimising rare earth metal extraction. Machine learning models can enhance mineral exploration, improve processing efficiency, and reduce environmental impact. By leveraging AI to secure its own supply chains, India and France can create a self-reinforcing cycle of innovation. Through AI-driven cooperation, India and France are not just advancing their technological prowess but also shaping global AI governance, emphasising ethical frameworks and inclusive development. This partnership underscores their commitment to leveraging AI for economic growth, security, and global leadership in the digital era. As AI continues to evolve, the need for high-performance hardware, powered by REMs, will only grow. By strategically aligning their strengths—India’s resource potential and France’s technological prowess—the two nations can create a robust supply chain that not only fuels AI innovation but also strengthens economic resilience. In the coming years, rare earth metals will remain at the core of AI advancements, underscoring their critical role of the digital revolution.

The writers are PhD Research Scholars, Jadavpur University. Views expressed are personal