India has huge rare earth metal reserves, but production is low

Hans India

13 hours ago

'Rare earth elements' (REEs) are not actually rare in the Earth's crust, but their extraction and processing are challenging. Hence, making them economically and strategically is more important. India has the fifth-largest REE reserves globally, particularly in coastal and inland placer sands. However, despite these substantial reserves, India's contribution to global REE production is less than one per cent. This is due to limited investment in mining and refining infrastructure, as well as challenges in extracting REEs from low-grade deposits and developing advanced separation and refining technologies, particularly compared to China, the US, and Japan.
India possesses significant REE reserves, estimated at 6.9 million metric tons, making it the fifth-largest globally. However, its production remains low, with less than one per cent of global REE output.
India is the fifth-largest rare earth resource globally, with significant deposits in the monazite minerals. There are around 13.07 million tonne of REEs, mainly found in the monazite sand, which contains 55-60 per cent total Rare Earth Elements oxide.
India's primary REE deposits are found in coastal beach sands, which often contain low mineral content.
India's decision to cordon off its rare earth output set the tone for a nervous week in critical mineral markets. New Delhi ordered Indian Rare Earths Limited (unlisted) to halt neodymium exports to Japan, a dramatic break with a 13-year supply pact and a reminder that Chinese licensing controls have given every producer political leverage. Although India mined only 2,900 tonne of neodymium oxide last year, officials now pledge to reserve enough for a future magnet industry and to sweeten domestic processing with incentives.
Beijing answered from the shadows. Satellite imagery and local reports show the United Wa State Army—long backed by China—ring-fencing freshly opened dysprosium and terbium-rich deposits in Myanmar's Shan State. Trucks already carry concentrate across the border, offsetting supply lost to fighting farther north and tightening China's grip on the heavy rare earths that temper heat in electric-vehicle (EV) motors and precision-guided munitions.
While exploration efforts are underway, particularly in Rajasthan, commercially viable deposits of magnet-grade REEs haven't been verified yet.
India lacks the technology and infrastructure for large-scale mining and processing of REEs, leading to reliance on imports, particularly magnets, mainly from China.
The Indian government is actively working to develop a self-reliant REE supply chain through the National Critical Mineral Mission and exploration projects.
Efforts are being made to develop advanced separation and refining technologies to process REEs domestically, reducing reliance on imports and increasing domestic production.