Economy

Rare Earth Elements in India

GS3 Minerals and strategic resourcesGS2 International relationsPrelims and Mains

In the news since 12 March 2026

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.

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Each time it was in the news

  1. 12 March 2026

    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.