In the Amicus Growth Report, India ranked third globally with rare earth oxide (REO) reserves. China and Brazil ranked first and second respectively.
- In a report released by Amicus Growth, India ranked third in rare earth reserves with 6.9 million tonnes (MT) of rare earth oxide (REO), which is about 6 to 7% of global reserves.
- China ranked first with 44 MT REO and Brazil (about 21 MT) ranked second.
REE production:
- In 2024, India produced about 2,900 tonnes, which is less than 1% of global production, placing it at 7th position globally. China secured first place by producing about 270,000 tonnes in 2024.
- The USA produced 45,000 tonnes and secured second place, followed by Myanmar (31,000 tonnes) (third place), Nigeria (fourth), Thailand (fifth), and Australia (sixth), each producing about 13,000 tonnes.
- Russia ranked (8th), Madagascar (9th) with about 2,500 tonnes, and Vietnam (10th) with (300 tonnes) of production.
Constraints for production in India:
- Most Indian REEs are found in monazite-rich coastal sands that also contain thorium, a radioactive element. Mining and processing of these sands are heavily regulated, which slows activity and discourages private investment.
- This also includes limited processing or refining, outdated technology and infrastructure, and low participation of the private sector.
Government of India initiatives in the mining industry:
- NCMM: National Critical Minerals Mission, launched by the Government of India (GOI) in 2025 under the Ministry of Mines (MoM), with a budget of ₹16,400 crore for a seven-year period from the financial year 2024-25 (FY25) to the financial year 2030-31 (FY31).
- The objective of NCMM is to secure and strengthen the supply of critical minerals required for modern technologies such as electric vehicles (EV), solar panels, electronics, defence systems and clean energy industries.
Rare Earth Elements
- Rare Earth Elements (REE) are a group of 17 metallic elements that have unique magnetic, optical and chemical properties and are high-grade, economically extractable deposits.
- 17 metallic elements: This includes light rare earth elements (LREEs) such as lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), and samarium (Sm).
- Heavy rare earth elements (HREEs) include europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu), yttrium (Y), and scandium (Sc). Key highlights of the report:
- Other top 10 countries: Australia ranked fourth with 5.7 MT, Russia (5th position) (3.8 MT), Vietnam (6th position) (3.5 MT), Malaysia (7th position) (2 MT), Thailand (8th position) (1.9 MT), United States of America (USA) (9th position) (1.9 MT), and Burundi (1.5 MT).
Rare Earth Permanent Magnet (REPM)
- The Government of India has approved a ₹7,280 crore scheme to promote manufacturing of sintered rare earth permanent magnets (REPM).
- This initiative is part of the National Critical Mineral Mission (NCMM), which includes sales-linked incentives and capital subsidies over seven years.
- The objective of this initiative is to create an integrated manufacturing capacity of 6,000 metric tonnes per annum (MTPA) within 7 years, covering the entire value chain from rare earth oxide to finished magnets.
- This project is important to reduce dependence on imports (mainly from China) for industries such as electric vehicles, renewable energy, electronics, aerospace and defence.
- The scheme includes ₹6,450 crore as sales-linked incentives for five years and ₹750 crore as capital subsidy for setting up facilities.
- Implementation: This initiative is managed by the Department of Atomic Energy (DAE) and supported by policy reforms under the MMDR Act.
National Critical Minerals Mission (NCMM)
- It was approved in 2025 with a budget of ₹34,300 crore, with the aim of securing the supply of 30 essential minerals for India for green technology, defence and electronics.
- It accelerates exploration with 1,200 projects planned by the Geological Survey of India (GSI) (2024–2031) and targets auctioning more than 100 mineral blocks.
- It promotes acquisition of overseas assets through Khanij Bidesh India Limited (KABIL) and aims to develop a national stockpile of at least 5 critical minerals.
- It establishes Centres of Excellence (CoEs) for R&D (target of 1,000 patents) and promotes recycling of e-waste and battery scrap with a budget of ₹1,500 crore.
