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India's 8.5M Tonne Rare Earth Reserves Face Extraction & Processing Hurdles

India possesses substantial rare earth oxide resources totaling approximately 8.52 million tonnes, identified across several states. However, the country remains reliant on imports for critical rare earth magnets due to low-grade domestic deposits, regulatory restrictions, and an underdeveloped processing industry. To bridge this gap, the government has approved a major financial scheme to boost domestic magnet manufacturing capacity. Additional initiatives include a new defence-focused production plant and the creation of dedicated industrial corridors for the rare earth sector.

Key Points: India's Rare Earth Reserves & Import Dependence Explained

  • 8.52M tonnes of rare earth oxide resources identified
  • Dependence on imports for magnets due to structural issues
  • Cabinet approved Rs 7,280 crore scheme for magnet manufacturing
  • New plant in Andhra for defence-grade magnets
  • Budget 2026-27 announced dedicated rare earth corridors
2 min read

India has over 8.5 million tonnes rare earth reserves: Dr Jitendra Singh

India holds 8.52M tonnes of rare earth oxides but imports magnets due to low-grade deposits, regulations, and a limited processing industry.

"India's dependence on imported rare earth magnets persists on account of three structural constraints - Dr Jitendra Singh"

New Delhi, April 2

India holds rare earth oxide resources of approximately 8.52 million tonnes, but remains dependent on imports for rare earth magnets and related products due to low-grade domestic deposits, regulatory constraints and a limited processing industry, the Parliament was informed on Thursday.

In a written reply in Rajya Sabha, Union Minister of State for Science and Technology, Dr Jitendra Singh, said the Atomic Minerals Directorate for Exploration and Research has identified 7.23 million tonnes of total rare earth oxide equivalent contained in monazite deposits across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra.

An additional 1.29 million tonnes of rare earth resources have been identified in hard rock terrains in Gujarat and Rajasthan.

Despite these reserves, India's dependence on imported rare earth magnets persists on account of three structural constraints: domestic ore grades are significantly low at 0.056-0.058 per cent and are tied to radioactivity, making extraction complex and expensive; mineable reserves are limited due to coastal regulation zone rules, forest cover, and mangrove restrictions; and the country lacks a midstream rare earth value chain for manufacturing metals, alloys, and magnets from refined oxides.

To address this gap, the Union Cabinet in November 2025 approved a scheme to promote the manufacturing of sintered rare earth permanent magnets, with a total financial outlay of Rs 7,280 crore.

The scheme targets the establishment of 6,000 metric tonnes per annum of rare earth permanent magnet manufacturing capacity in India, supported by sales-linked incentives of Rs 6,450 crore over five years and a capital subsidy of Rs 730 crore, the minister highlighted.

He further stated that the government has also set up a rare earth permanent magnet plant in Andhra Pradesh for annual production of three tonnes of samarium cobalt magnets used in defence and atomic energy applications.

"Complementing these efforts, the Union Budget 2026-27 has announced dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu," according to him.

Rare earth permanent magnets are critical components in electric vehicles, renewable energy systems, high-end electronics, aerospace equipment, and defence systems.

- IANS

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Reader Comments

P
Priya S
Good to see the government acknowledging the problem. But having reserves and actually processing them are two different things. The article clearly states the constraints - low grade ore, environmental rules, lack of midstream industry. The scheme sounds good on paper, but execution is key. Hope they involve private players effectively.
R
Rohit P
Finally! We talk about being 'Atmanirbhar' but keep importing critical minerals. Setting up the plant in Andhra and the dedicated corridors in Odisha, Kerala, AP, and TN can create so many jobs. This is strategic for our energy and security future.
S
Sarah B
As someone working in the renewable energy sector, this is crucial. Rare earth magnets are the heart of wind turbines and high-efficiency motors. If India can build this capacity, it will reduce costs and supply chain risks for our green transition. A very positive development.
K
Karthik V
The environmental constraints mentioned are important. We can't just mine everything without care for forests and coastal zones. The challenge is to develop advanced, cleaner extraction and processing tech that works with our low-grade ore. That's where the real investment in R&D should go.
M
Meera T
8.5 million tonnes is a huge number! But the devil is in the details - 0.056% grade is very low. It will be expensive to process. Hope the subsidies are enough to make domestic production competitive with Chinese imports. Jai Hind!

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