India Ramps Up Rare-Earth Mineral Exploration and Processing Capacity

India is intensifying efforts to explore, mine and process rare-earth minerals, with the government announcing significant progress in resource identification and policy reforms aimed at boosting domestic production of these critical materials.

Mines and Coal Minister G. Kishan Reddy informed the Rajya Sabha on Tuesday that the Atomic Minerals Directorate for Exploration and Research has identified 139 rare-earth mineral deposits across the country. These include 136 beach sand mineral deposits containing 13.15 million tonnes of monazite, with approximately 7.23 million tonnes of in-situ Rare Earth Oxide equivalent resources spread across Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Maharashtra, Gujarat, Jharkhand and West Bengal. Additionally, three hard rock deposits in Rajasthan and Gujarat contain 1.29 million tonnes of in-situ Rare Earth Oxide equivalent resources.

Despite having adequate rare-earth resources and extraction capabilities, India has faced challenges in commercial-scale mining and processing. The government attributed this to the lack of adequate technology, absence of midstream and downstream industries, and the complexity of Indian deposits, which contain lower-grade ores tied with radioactive elements like uranium and thorium, making extraction more expensive and time-consuming.

To address these challenges, the government has implemented several policy measures. The Mines and Minerals Development and Regulation Act was amended in 2023 to facilitate exploration and mining of 24 critical and strategic minerals, including rare-earth elements. The Ministry of Mines has auctioned 46 critical mineral blocks across six tranches, with two blocks specifically for rare-earth elements under the new Exploration License category.

In January 2025, the Union Cabinet approved the National Critical Mineral Mission to secure long-term sustainable supply of critical minerals and strengthen India's value chain from exploration to processing and recovery. Regulatory reforms have streamlined environmental clearances for critical mineral projects, including exemptions from public hearing requirements.

Most recently, in November 2025, the Cabinet approved a scheme worth Rs.7,280 crore to establish 6,000 metric tons per annum of integrated Rare Earth Permanent Magnet manufacturing capacity in India. The initiative aims to enhance self-reliance and position India as a significant player in the global rare-earth permanent magnet market.

India is among three to four countries globally with the plant capacity, technology and skilled workforce in the rare-earth sector. However, the minister noted that Indian resources predominantly contain light rare-earth elements, and mining of monazite remains under government control due to its association with radioactive materials.