India is taking strong steps to secure rare earth elements (REEs) and critical minerals, which are essential for the country’s economic, technological, and strategic growth. Prime Minister Narendra Modi’s government recognises that these minerals, including lithium, cobalt, nickel, and neodymium, are key for clean energy, electric vehicles (EVs), advanced electronics, and defence systems. With global demand rising and China dominating rare earth processing, India is pursuing a balanced approach that combines domestic mining with international partnerships to ensure a reliable supply of these critical resources.
Rare earth minerals are central to India’s vision of a self-reliant economy under the Aatmanirbhar Bharat initiative and its target of net-zero emissions by 2070. They are needed for EV batteries, solar panels, wind turbines, semiconductors, radar systems, and precision-guided missiles. India aims for 30 per cent EV adoption by 2030, making a stable supply of these minerals crucial for industrial growth, reducing import dependence, and securing technological independence.
Currently, India imports over 90 per cent of its rare earth minerals, while China controls 85–95 per cent of global refining and magnet production. Past supply restrictions from China, such as in 2010 and 2025, disrupted global markets and forced Indian manufacturers to cut production. By developing domestic resources, India seeks to mitigate such risks and strengthen its position in the global critical minerals market.
India has the world’s third-largest reserves of rare earth minerals, estimated at 6.9 million metric tons, mostly in monazite sands along the coasts and inland deposits of Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Despite these reserves, India contributes only 0.7 per cent of global production due to technical, regulatory, and geological challenges.
The government has launched the National Critical Minerals Mission (NCMM) with a budget of Rs 16,300 crore over seven years to explore, process, and recycle these minerals. More than 1,200 sites are being studied, and private companies are now allowed to participate in mining, a change from earlier restrictions. The 2023 amendment to the Mines and Minerals (Development and Regulation) Act streamlined procedures for radioactive minerals, further promoting domestic production.
Indian Rare Earths Limited (IREL), under the Department of Atomic Energy, is leading these efforts. In FY 2023–24, IREL produced a record 531,000 tonnes of minerals and plans to scale ore processing to 50 million tonnes per year and triple rare earth oxide output to 13,000 tonnes by 2032. A ₹197 crore Rare Earth Permanent Magnet facility in Visakhapatnam, producing 3,000 kg annually, positions India among the few nations with such technology.
Exploration has also intensified in northeastern states like Arunachal Pradesh and Assam, supported by research collaborations with Bhabha Atomic Research Centre and IIT Dhanbad. The government is also promoting partnerships between public and private players, such as Hindustan Copper Limited and RITES, to create a complete domestic value chain for rare earth minerals.
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India recognises that heavy rare earth elements are scarce domestically and that reducing dependence on China is essential. The government has pursued global partnerships to secure supply chains. In 2025, Prime Minister Modi strengthened ties with lithium-rich regions in Argentina and Brazil, with India’s Khanij Bidesh India Ltd (KABIL) signing exploration deals to secure lithium for EVs and batteries. Agreements with Central Asian countries—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan—opened avenues for joint exploration of critical minerals.
Collaboration with Russia on rare earth extraction, and partnerships with Namibia for lithium, cobalt, and uranium, are part of India’s efforts to streamline green technology supply routes. India is also engaging with Japan, South Korea, Australia, and the US to develop rare earth magnets and reduce reliance on China while remaining pragmatically connected with China for essential trade.
These efforts have clear economic and strategic benefits. Domestic mineral production reduces import dependence, redirects resources toward development goals, and strengthens India’s global competitiveness in EVs and renewable energy technologies. Strategically, securing critical minerals ensures availability for defence systems and high-tech industries, protecting India’s sovereignty in a resource-constrained world.
Challenges remain. India’s mineral reserves are often low in purity, increasing extraction costs. Infrastructure for processing alloys and magnets is limited, and regulatory issues for radioactive minerals persist. The government is exploring fiscal incentives, industrial zones, and long-term strategies inspired by global examples, such as Japan’s phased approach to increasing domestic value addition in rare earths.
In conclusion, India’s strategy on rare earth and critical minerals is a vital step toward economic self-reliance and technological leadership. Through domestic exploration, international partnerships, research, and industry collaboration, India is reducing dependence on imports, strengthening supply chains, and positioning itself as a global player in the critical minerals market. As PM Modi said, “The technologies of the 21st century—clean energy, electric mobility, digital transformation—all depend on critical minerals. India is ready to be a reliable partner in this shared journey of sustainable development.”
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