India and Rare Earth Elements: Securing the Minerals of the Future
Introduction
In the 21st century, global power is no longer defined solely by oil reserves or conventional military strength. Instead, critical minerals, especially Rare Earth Elements (REEs), have emerged as strategic assets shaping geopolitics, technology, and economic growth.
From smartphones and electric vehicles to wind turbines and advanced defence systems, REEs are indispensable. For India—an aspiring global manufacturing hub and a leading voice of the Global South—the question is no longer whether rare earths matter, but how effectively the country can secure, process, and leverage them.
Understanding Rare Earth Elements
Rare Earth Elements are a group of 17 metallic elements, including 15 lanthanides, along with scandium and yttrium.
Despite the term “rare,” these elements are relatively abundant in the Earth’s crust; however, they are rarely found in concentrated, economically viable forms, making extraction and processing challenging.
Their importance lies in their unique magnetic, luminescent, and electrochemical properties, which make them critical for:
- Electric vehicle motors
- Renewable energy technologies (wind turbines, solar panels)
- Defence systems (missiles, radars, night-vision devices)
- Electronics and semiconductors
- Aerospace and space technologies
India’s Rare Earth Potential: An Untapped Advantage
India possesses significant reserves of rare earths, estimated at around 6–7% of global reserves, primarily in the form of monazite-rich beach sand minerals. These are found along the coastal stretches of:
- Tamil Nadu
- Kerala
- Andhra Pradesh
- Odisha
- West Bengal
Additionally, inland deposits exist in Jharkhand and Rajasthan.
Yet, despite this geological advantage, India remains a minor player in global REE production, largely due to policy constraints, technological gaps, and environmental concerns.
China’s Dominance and India’s Strategic Dilemma
China currently controls over 60% of global rare earth production and nearly 85–90% of processing capacity. This near-monopoly has allowed China to use REEs as a strategic geopolitical lever, as seen during past trade tensions.
For India, this presents a dual challenge:
- Supply vulnerability for critical industries
- Strategic dependence on a geopolitical competitor
In an era of increasing border tensions and technological competition, reliance on imported rare earths—especially from China—poses serious national security risks.
Policy Landscape in India
Historically, rare earth mining in India has been tightly regulated due to the presence of thorium, a radioactive element associated with monazite. The sector has largely been controlled by Indian Rare Earths Limited (IREL), a public sector undertaking under the Department of Atomic Energy.
Recent policy shifts, however, signal a change in approach:
Key Policy Developments
- Opening up the sector to private participation under strict regulatory oversight
- Alignment with the Critical Minerals Mission
- Integration with Make in India and Atmanirbhar Bharat initiatives
- Strategic partnerships through groupings like QUAD
These steps indicate recognition at the highest levels that REEs are central to India’s industrial and strategic future.
Environmental and Social Concerns
Rare earth mining is not without costs. The extraction and processing stages often involve:
- Radioactive waste generation
- Groundwater contamination
- Coastal ecosystem degradation
- Displacement of local communities
India’s challenge is to balance strategic ambition with environmental responsibility. Unlike some global producers, India has the opportunity to develop cleaner, more sustainable extraction and processing technologies from the outset.
Why Rare Earths Matter for India?
- Strategic Autonomy: Reduces dependence on hostile or unreliable suppliers
- Green Transition: Essential for renewable energy and EV targets
- Defence Preparedness: Critical inputs for modern military systems
- Economic Growth: Boosts high-value manufacturing and exports
- Geopolitical Leverage: Strengthens India’s role in global supply chains
The Way Forward
For India to emerge as a serious rare earth power, a multi-pronged strategy is essential.
- Invest in processing and refining, not just mining
- Encourage private and foreign investment with clear safeguards
- Strengthen R&D in recycling and substitution technologies
- Build strategic stockpiles of critical minerals
- Promote international collaboration with trusted partners
- Ensure environmental and social safeguards through transparent regulation
Conclusion
Rare Earth Elements sit at the intersection of technology, geopolitics, and sustainability. For India, they represent both a challenge and an opportunity. The country has the resources, the market demand, and the strategic motivation. What it needs now is coherent policy execution, technological capability, and long-term vision.
If India can successfully harness its rare earth potential, it will not only strengthen its own economic and strategic position but also offer the world a credible, democratic alternative in critical mineral supply chains. In doing so, India can truly turn rare earths into a common foundation for a secure and sustainable future.
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