India Ranks Third in Global Rare Earth Reserves, Faces Extraction and Infrastructure Challenges
India holds the world's third largest rare earth resources, approximately 8.52 million tonnes of REO equivalent. Despite this potential, extraction is limited due to radioactivity issues and a lack of industrial infrastructure. The National Critical Mineral Mission was launched to enhance the supply chain for critical minerals, including seven rare earth blocks auctioned. The government aims to promote recycling and develop facilities for processing these minerals, but dependence on imports persists due to missing mid-stream and downstream capabilities.
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India has the world's third largest rare earth reserves at about 8.52 million tonnes of REO equivalent, yet produces only a small fraction due to radioactivity challenges and inadequate industrial infrastructure. The National Critical Mineral Mission aims to secure a sustainable supply of critical minerals and has led to the auction of 46 critical mineral blocks, including seven for rare earth elements.
The government is funding pilot projects and has introduced an incentive scheme to promote recycling. However, India's dependence on imports for processed rare earth products continues as the country lacks mid-stream and downstream processing facilities. Recent budget measures have aimed to reduce customs duties on critical minerals and processing equipment.
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