By R N Chandrakala
India is the third-largest holder of rare earth mineral reserves in the world. Estimates suggest that about 6–7% of global rare earth resources are located in India.
Yet India contributes less than 1% to global production.
This gap is more than just a statistical curiosity. It represents a strategic challenge affecting India’s clean energy transition, defence capability, technological self-reliance, and national security.
What Are Rare Earth Minerals?
Rare Earth Elements (REEs) are a group of 17 metallic elements critical for modern technology.
Light Rare Earth Elements
- Lanthanum
- Cerium
- Praseodymium
- Neodymium
- Samarium
Heavy Rare Earth Elements
- Europium
- Terbium
- Dysprosium
- Yttrium
- Erbium
- Holmium
- Lutetium
Despite the name, these minerals are not extremely rare. They exist widely in the Earth’s crust.
However, they are called “rare” because extracting, separating, and refining them is technically complex and expensive.
Why Rare Earth Minerals Are Critical
Rare earth minerals power many technologies we use daily.
They are essential for:
- Electric vehicles (EVs)
- Wind turbines
- Smartphones and laptops
- Advanced defence systems
- Permanent magnets and batteries
Example: A Smartphone
Even a simple smartphone depends on rare earth elements.
- Speaker → Neodymium
- Screen colors → Europium
- Vibration motor → Rare earth magnets
Even when smartphones are assembled in India, the processing of these minerals is often done in China.
Where Are Rare Earth Minerals Found in India?
India’s rare earth resources are mostly found in monazite-rich coastal sands.
Major deposits occur along:
- Eastern coastal regions
- Southern coastal regions
Monazite also contains thorium, a radioactive element. Because of this, mining and processing are heavily regulated by the government.
India’s Production vs Global Leaders
According to 2024 estimates:
| Country | Production |
| China | 270,000 tonnes |
| United States | 45,000 tonnes |
| Myanmar | 31,000 tonnes |
| India | 2,900 tonnes |
While India has large reserves, its production remains extremely limited.
Structural Bottlenecks in India
1. Strict Regulatory Controls
Rare earth mining in India has long been under tight government regulation.
Production is largely controlled by Indian Rare Earths Limited (IREL), a government-owned company.
Historically, rare earth minerals were treated as by-products rather than strategic resources.
2. Lack of Processing and Refining Infrastructure
Mining alone does not create value.
The real economic and strategic advantage lies in:
- Mineral separation
- Chemical processing
- Refining
- Manufacturing high-value components
India currently lacks large-scale refining capacity.
Why China Dominates Rare Earth Minerals
China’s dominance is the result of decades of strategic planning.
Key factors include:
- Declaring rare earth minerals as strategic resources in the 1990s
- Massive investment in refining technology
- Building a complete industrial value chain
China controls the full supply chain:
Mining → Processing → Magnets → Electronics → Final Products
Today China controls nearly 90% of global rare earth refining capacity.
Strategic Risks for India
China’s dominance creates several challenges for India:
- Strategic vulnerability in defence production
- Dependence in electric vehicle manufacturing
- Limited control over global supply chains
- Challenges for the Make in India initiative
The Role and Limits of IREL
Indian Rare Earths Limited (IREL) plays a key role in India’s rare earth sector.
However, several limitations remain:
- Slow technological upgrades
- Limited private sector participation
- Lack of commercial-scale expansion
In the current global competition, a single public-sector company cannot drive the entire industry.
What India Must Do
Experts suggest several policy measures:
- Simplify regulatory frameworks
- Invest in refining and processing facilities
- Encourage private sector participation
- Build technology partnerships with Japan and Europe
- Develop the complete rare earth value chain
Conclusion
Rare earth minerals are often called the “oil of the 21st century”.
Countries that control their processing and supply chains will shape the future of technology and energy.
India has the resources.
What it needs now is strategic vision and faster execution.
If implemented effectively, India could move from being a resource holder to a global rare earth power.
Source: National media reports / Official statements / News agencies