Rare Earth Elements (REEs) are indispensable to modern technology, national defense, and the green energy transition. Their scarcity in economically viable extraction and their growing strategic significance have made them focal points in the evolving geopolitical landscape. While India has the geological potential to become a significant player in the REE domain, the lack of a cohesive policy and infrastructure has stalled progress. This advocacy article proposes a comprehensive roadmap to enable India to secure its REE future, reduce dependency on China, and catalyze economic growth and technological sovereignty.
The Strategic Value of Rare Earth Elements
Rare Earth Elements (rees) are a group of 17 metals comprising 15 lanthanides, scandium, and yttrium. Known for their unique electromagnetic and catalytic properties, these elements are the hidden engines behind today’s cutting-edge technology. REEs are not rare in natural abundance, but the challenge lies in economically viable extraction, separation, and refining, which are complex and environmentally taxing processes.
India has REE-rich monazite sands along its eastern and southern coastal states. Despite this geological advantage, the absence of modern refining capacity and strategic planning has prevented the country from leveraging this asset. With the global shift toward electric vehicles, renewable energy, and digital technologies, India’s reliance on imports—primarily from China—makes it vulnerable to supply chain disruptions and geopolitical leverage.
Global Dynamics: China’s Dominance and Strategic Implications
China controls about 60% of REE mining and over 85% of the processing and refining infrastructure globally. This dominance is not coincidental; it results from decades of state-backed investment, subsidies, and long-term strategic planning. By building near-monopoly control over the refining segment—which is the most technologically intensive—China has acquired significant geopolitical leverage.
In 2010, China demonstrated this power by blocking REE exports to Japan over a maritime territorial dispute. The repercussions sent shockwaves across global technology industries. Similar coercive strategies could be employed again, disrupting everything from smartphones to missile guidance systems.
In response, nations like the United States, Australia, Japan, and the European Union have launched counter-initiatives. These include the Minerals Security Partnership (MSP), Critical Raw Materials Acts, and strategic investments in domestic mining and processing capacities. Although India is part of these conversations, it has not yet transitioned from dialogue to decisive action.
Current Status in India: Challenges and Missed Opportunities
India’s rare earth sector faces several critical challenges.
Policy Ambiguity: No national REE policy prioritizes these minerals as strategic resources.
Public Sector Monopoly: IREL (India) Ltd. currently monopolizes REE mining and processing, limiting innovation, competition, and scalability.
Technological Deficit: India does not yet possess large-scale separation and refining facilities. This gap forces the export of raw minerals and the import of value-added REE products.
Environmental Clearance Delays: Although environmental standards are vital, the lack of a streamlined clearance mechanism delays responsible mining projects.
R&D and Human Capital Deficiency: There is a pressing need for trained professionals and institutions dedicated to REE research and innovation.
These bottlenecks prevent India from realizing its REE potential and reduce its strategic autonomy in critical sectors.
Applications of Rare Earth in National Security and Industry
Rare Earth Elements have become the backbone of several industries, with dual-use roles in civilian and military applications.
Defense Sector
REEs are integral to India’s defense modernization plans. Scandium and yttrium are used in lightweight alloys for aircraft and missile bodies. Neodymium and samarium are used in permanent magnets for advanced weaponry, including precision-guided munitions and stealth technology. Lanthanum and europium are crucial for night vision equipment and laser guidance systems.
Civilian and Industrial Sector
REEs are indispensable in clean technology and electronics. Neodymium and dysprosium are used in high-strength magnets for electric vehicle motors and wind turbines. Cerium is used to polish glass and clean catalytic converters. REEs are vital to producing semiconductors, LED screens, and high-speed internet infrastructure.
India’s aspirations for green energy and digital transformation under initiatives like Make in India and Atmanirbhar Bharat are directly linked to secure REE supply chains.
Strategic Recommendations for Policy Formulation
India must act with foresight and urgency. The following strategic measures are recommended:
National REE Mission
- Set up a dedicated National Rare Earths Mission under the Prime Minister’s Office or NITI Aayog.
- Designate REEs as strategic minerals under the National Mineral Policy.
- Maintain national inventory mapping reserves, usage, and import dependencies.
Regulatory Reforms
- Open REE mining to private players and international JVs with transparent bidding.
- Frame a precise, time-bound, and ecologically responsible environmental clearance mechanism.
- Set up a Rare Earth Regulatory Authority to oversee standards, safety, and compliance.
Technological Investment
- Develop refining and separation technologies indigenously with DRDO, ISRO, and CSIR support.
- Create Centres of Excellence (CoEs) for research on sustainable REE extraction.
- Forge technology partnerships with friendly nations for skill and knowledge transfer.
Industrial and Defence Integration
- Prioritize domestic REE usage in defense, space, and atomic sector procurement.
- Provide Production Linked Incentives (PLI) to manufacturers using indigenous REEs.
- Create Special Economic Zones (SEZs) for REE-based component manufacturing.
Strategic Stockpiling
- Establish national reserves of critical REEs akin to Strategic Petroleum Reserves.
- Ensure long-term availability for sectors crucial to national security and economic development.
Global Partnerships
- Use platforms like Quad, BRICS, and G20 to create REE cooperation frameworks.
- Sign mining and processing MOUs with resource-rich countries.
- Encourage the Indian industry to acquire overseas REE assets through sovereign funding mechanisms.
Environmental and Social Considerations
- India must demonstrate leadership in sustainable REE mining. Monazite sands often contain thorium, a radioactive element, which poses environmental risks if mishandled. Therefore:
- Strict adherence to radiation safety and ecological restoration guidelines is a must.
- Encourage community participation, skill development, and benefit-sharing models.
- Publish ESG compliance scores for all REE projects, ensuring transparency and accountability.
- India can be a global model for ethical and eco-conscious rare earth development.
A Geostrategic Outlook
REEs are fast becoming a tool of statecraft. The ongoing Russia-Ukraine war has shown how energy and resources can be weaponized. China’s dominance in the REE sector gives it a similar advantage that could destabilize supply chains at will.
India must draw lessons from these developments. Our security and economic future should not be subject to external coercion. Strategic autonomy starts with supply autonomy. We must build capacity not just to mine but to refine and manufacture end-use REE products domestically.
India cannot afford to be a mere supplier of raw minerals. The objective should be to climb the REE value chain—from extraction to application. This would generate employment, boost exports, and insulate the economy from global shocks.
The Time to Act is Now
Rare Earth Elements are not optional commodities but are foundational to India’s 21st-century ambitions. Controlling critical minerals like REEs will define strategic influence as the world pivots towards high-tech warfare, clean energy, and digital economies.
India must no longer delay. With robust policy, institutional commitment, and public-private collaboration, we can emerge not just as a rare earth power—but as a resilient, self-reliant technological powerhouse.
The time to act is not tomorrow. The time to act is now.