- Why in news
- On 12 March 2026, the Department of Atomic Energy told the Rajya Sabha that India has large but low-grade rare earth resources, and listed steps taken to build the value chain, including a ₹7,280 crore magnet scheme.
- What it is
- Rare earth elements (REE) are 17 metals used in magnets, electronics, defence and clean energy. India's REE sit mostly in monazite beach sands, which also carry thorium and so are radioactive. Atomic minerals are regulated by the Department of Atomic Energy, and exploration is done by its Atomic Minerals Directorate (AMD).
- Resource size
- India holds the world's third largest rare earth resources, per USGS (January 2025).
- Magnet scheme
- The scheme for sintered rare earth permanent magnets aims at 6,000 MTPA capacity, with an outlay of ₹7,280 crore: ₹6,450 crore sales-linked incentive for five years and ₹750 crore capital subsidy.
- National Critical Mineral Mission
- Cabinet approved NCMM on 29 January 2025 to secure critical mineral supply across the value chain.
- KABIL
- Khanij Bidesh India Limited is a joint venture company under the Ministry of Mines to acquire overseas mineral assets.
- Value chain gap
- India has facilities from mining to oxide refining, but lacks intermediate industrial facilities for alloy and magnets.
Don’t confuse with Light vs heavy REE: India's monazite is rich in light REE; heavy REE (in xenotime) occur only in small amounts.
Don’t confuse with REE resources vs production: India has large resources but limited production because mid-stream and downstream industries are missing.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Rare earth magnets are vital for EVs, wind turbines, electronics and defence, so domestic capacity supports self-reliance.
- Reduces import dependence and supply-chain risk in a market concentrated in a few countries.
Problems
- Ore is low grade and tied with radioactivity, making extraction long, complex and costly.
- Heavy REE are not economically available, and mid-stream and downstream facilities such as alloys and magnets are absent.
Way forward
- Build mid-stream and downstream capacity through the REPM scheme and the Vizag plant.
- Expand exploration, recycling and overseas acquisition through NCMM, auctions and KABIL.
Put in your answer
Auction progress: 46 critical mineral blocks auctioned, including 7 REE blocks.
Monazite resource: About 7.23 million tonne REO in 13.15 million tonne monazite resource.
- 2013Mains GS1 · Q24Discuss availability of atomic energy raw materials in India and world
- 2025Mains GS3 · Q17Why mining is an environmental hazard, and remedial measures needed
- 2019Mains GS3 · Q7Analyse impact of coastal sand mining on Indian coasts, citing examples
- 2001Prelims Q11Which listed organisations come under the Department of Atomic Energy
- 2026Prelims Q95Statements on rare earth elements, China and India mining share, and NCMM
- 2022Prelims Q28Statements on monazite: rare earth source, thorium, coastal occurrence, processing rules
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statement I and II
Ours, not from a UPSC paper
Consider the following statements about rare earth elements (REE) in India, based on the Government's reply in Parliament:
- Statement-I: India's monazite resource is mainly of light rare earth elements, while heavy rare earth elements are not available in economically extractable quantities.
- Statement-II: Under the scheme for sintered rare earth permanent magnets, most of the Rs 7,280 crore outlay is a capital subsidy for setting up manufacturing plants.
Which one of the following is correct in respect of the above statements?
True or false?
1 of 8
Statements the way Prelims prints them. Say first, then see the fact.
1.India has the world's third largest rare earth resources according to USGS data cited by the government.
True. USGS (January 2025) ranks India third.
2.The scheme for sintered rare earth permanent magnets targets 6,000 MTPA of manufacturing capacity.
True. Target is 6,000 MTPA of REPM.
3.Most of the REPM scheme outlay is a capital subsidy for setting up plants.
False. ₹6,450 crore of ₹7,280 crore is sales-linked incentive; capital subsidy is ₹750 crore.
4.Indian monazite resources predominantly contain heavy rare earth elements.
False. Monazite is predominantly light REE; heavy REE are not economically extractable in quantity.
5.Khanij Bidesh India Limited is a joint venture company under the Ministry of Mines created to acquire overseas mineral assets.
True. KABIL is a Ministry of Mines JV for overseas assets.
6.The Atomic Minerals Directorate for Exploration and Research is a constituent unit of the Department of Atomic Energy.
True. AMD is a DAE unit that established India's REE resources.
7.The National Critical Mineral Mission was approved by the Union Cabinet in January 2025 and covers only mineral exploration and mining.
False. NCMM covers the whole chain: exploration, mining, beneficiation, processing and recovery from end-of-life products.
8.Xenotime is a phosphate mineral of yttrium and heavy rare earth elements.
True. Xenotime is a yttrium and heavy REE phosphate mineral.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
India holds large rare earth resources, yet its production capacity is limited because the mid-stream and downstream industries are missing. In the light of the recent steps taken by the Government, including the National Critical Mineral Mission and the scheme for sintered rare earth permanent magnets, examine the challenges in building a rare earth value chain in India and suggest a way forward.
Worth revising until Prelims 2027: most news questions come within two years of the event.