Rare earth minerals are strategically important for India’s growth, national security, and economic competitiveness especially as the country moves toward clean energy and advanced technology industries. These minerals are essential for manufacturing electric vehicles, wind turbines, solar panels, smartphones, defense systems, and several other technologies that define modern life.

India holds nearly 8% of the world’s rare earth element (REE) reserves and ranks third globally in total deposits, most of which are concentrated in coastal states such as Tamil Nadu, Kerala, Andhra Pradesh, and Odisha. However, despite this rich resource base, India currently contributes less than 1% to global rare earth mining  revealing a major opportunity for development and self-reliance.

What Are Rare Earth Minerals?

Rare earth elements include 15 lanthanides along with scandium and yttrium, making up a total of 17 elements. Although they are relatively common in the Earth’s crust, these elements rarely occur in concentrated deposits suitable for large-scale mining.

Key rare earth minerals found in India include monazite, ilmenite, xenotime, bastnäsite, and rutile. Each mineral serves a distinct industrial purpose  monazite and xenotime are rich in lanthanides essential for electric motors and wind turbines, while ilmenite and rutile provide titanium used in aerospace materials, solar cells, and pigments.

Economic and Strategic Value

Rare earth minerals are vital for more than 200 advanced applications that support India’s transition toward clean energy and high-tech industries.
Critical elements like neodymium and europium are particularly valuable; neodymium is used in powerful magnets for motors and generators, while europium enables bright display technologies in LED screens and smartphones.

These elements play an important role in achieving India’s climate goals, energy security, and manufacturing growth. By expanding domestic mining and processing, India can reduce its dependence on imports and strengthen its position in the global supply chain for green technologies.

Government Initiatives and Policy Support

To address the gap between reserves and production, the government launched the National Critical Mineral Mission (NCMM) in 2025.
The mission focuses on:

• Expanding exploration and identifying 1,200 new mineral deposits
  

• Investing ?1,500 crore to improve recycling and resource recovery
  

• Enhancing processing and refining capacity
  

• Building partnerships with global leaders for technology transfer
  

Indian Rare Earths Limited (IREL) plays a leading role in this effort. The company operates facilities across Odisha, Kerala, and Tamil Nadu, producing rare earth oxides, thorium compounds, and zircon.
Projects such as the Odisha Sands Complex and pilot plants in Bhopal are being developed to cover the full “mine-to-magnet” value chain  from extraction to advanced material production.

India is also strengthening collaborations with countries such as Australia, Japan, and the United States to access advanced processing technologies and establish secure international supply chains.

Strategic Impact

Secure access to rare earth minerals is essential for India’s renewable energy expansion and digital economy. Reliable domestic production not only supports national defense and energy independence but also provides resilience against global supply disruptions.

By building a strong rare earth ecosystem, India can support high-value, export-oriented industries in sectors like defense, electronics, and electric mobility. This aligns with broader goals such as “Make in India” and Atmanirbhar Bharat, both focused on boosting manufacturing and technological leadership.

Uses of Rare Earth Minerals in Key Industries

Rare earth elements touch nearly every part of modern life and industrial production. Below are the main application areas:

Magnets and Motors

Elements such as neodymium, praseodymium, samarium, and dysprosium are used to make strong permanent magnets. These magnets are essential for electric vehicles, wind turbines, hard disk drives, and various consumer electronics.

Electronics and Displays

Europium, yttrium, and terbium are key to producing LED screens, smartphones, and color televisions. They create the bright and efficient phosphors used in display and lighting technologies.

Glass and Optics

Cerium and lanthanum are critical for glass polishing, UV protection, and creating specialty optical lenses, including those used in cameras and scientific equipment.

Green Technologies

Rare earths contribute directly to electric mobility and renewable energy systems. For instance, lanthanum is used in nickel-metal hydride batteries, while other REEs support the production of solar panels and wind turbines.

Petroleum Refining and Catalysts

Lanthanum and cerium compounds serve as catalysts in petroleum refining and emission control systems such as automotive catalytic converters.

Ceramics and Metallurgy

These elements enhance the strength and heat resistance of ceramics and metal alloys — vital for aerospace, electronics, and manufacturing industries.

Medical Technologies

Gadolinium and other rare earths are used in MRI contrast agents, cancer therapies, and surgical laser systems, improving diagnostic and treatment capabilities.

Defence and Aerospace

Rare earth magnets and alloys are integral to advanced defense systems, including guided missiles, radar systems, and satellite communication equipment. Their performance, strength, and reliability make them irreplaceable in national security applications.

Additional specialized uses include water purification using cerium compounds, nuclear reactor control rods made from gadolinium and samarium, and fiber-optic data transmission using doped glass fibers.

India’s Growing Rare Earth Industry

India’s rare earth business is led by a mix of government-owned and private enterprises that are expanding operations with policy and financial support.

Major Rare Earth Companies in India

IREL (India) Limited:
A government-owned PSU headquartered in Mumbai, IREL is the backbone of India’s rare earth extraction and refining network. It operates major facilities in Odisha, Kerala, and Tamil Nadu.

Trimex Sands:
A private sector player focused on beach sand minerals, active mainly in Odisha and Kerala.

V.V. Mineral:
South India’s largest private miner of beach sand minerals, headquartered in Tamil Nadu.

Kerala Minerals & Metals Ltd (KMML):
A government enterprise involved in mineral sand processing and titanium dioxide production.

Toyotsu Rare Earths India:
A joint venture engaged in specialty rare earth processing projects in Odisha and Kerala.

Other Companies Expanding into Rare Earths

Several listed Indian companies are diversifying into rare earth and critical minerals:

• Gujarat Mineral Development Corporation (GMDC): Expanding into rare earths as part of its broader mineral portfolio.
  

• Hindustan Copper Ltd: A PSU exploring rare earth-linked minerals to support strategic industries.
  

• MOIL Ltd: India’s largest manganese producer, now venturing into battery and specialty minerals.
  

• Sandur Manganese & Iron Ores Ltd: Expanding operations to include rare earth and alloy materials.
  

• Orissa Minerals Development Company (OMDC): Reviving rare earth operations under state initiatives.
  

• Vedanta Ltd and Hindustan Zinc: Both are investing in strategic minerals to support India’s clean energy and industrial goals.
  

Together, these companies represent a growing ecosystem that supports India’s ambition to become a self-reliant and globally competitive supplier of rare earth minerals.

Outlook: Building a Sustainable and Strategic Future

India’s rare earth minerals sector is evolving rapidly. With government backing, technological progress, and international partnerships, the country is building the foundation for a strong and sustainable rare earth economy.

Expanding domestic refining capacity, investing in R&D, and promoting responsible mining will be key to unlocking India’s full potential in this strategic domain. Over the next decade, India could emerge not just as a supplier of raw materials but as a global hub for high-value rare earth products like magnets, catalysts, and electronic components.

By focusing on innovation, transparency, and sustainability, India can turn its natural reserves into an engine of growth, supporting industries that power the clean energy transition, digital innovation, and national security.