India’s rare earths: resources, capacity and strategic push

India is positioning itself to convert sizeable rare earth reserves into an end-to-end domestic supply chain.

Rare earth elements (17 elements including the 15 lanthanides plus scandium and yttrium) supply unique magnetic, catalytic and phosphorescent properties used in electric motors, wind turbines, displays, batteries and defence systems. Substitutes are limited, so even small quantities are critical to high-tech and clean-energy manufacturing.

India is estimated to hold about 6.9 million tonnes of reserves—among the world’s largest—yet mine output has been modest (~2,900 tonnes REO annually, under 1% of global supply). China remains the dominant producer (~70% of output), while global production reached roughly 390,000 tonnes REO in 2024. Closing the gap between reserves and production requires technical, environmental and logistical scaling.

Policy measures and industrial projects seek to change that. Initiatives include pilot and theme-park facilities to commercialise extraction and processing, expansions at Indian Rare Earths Limited (OSCOM/IREL), new separation plants, and plans for a domestic permanent-magnet industry. Targets include roughly tripling rare-earth oxide capacity by 2032 and developing integrated plants to make metals, alloys and magnets.

Success would strengthen clean-energy supply chains, support advanced electronics and mobility, reduce defence import vulnerability, and create higher-value export opportunities—provided technical, regulatory and environmental challenges are managed effectively.