New discoveries and expanded exploration efforts
India is significantly expanding its rare-earth mineral exploration and processing capacity as part of a strategic push to reduce import reliance and secure domestic supply for critical industries including electric vehicles, renewable energy, electronics and defence. The Atomic Minerals Directorate for Exploration and Research has identified 139 rare-earth mineral deposits across the country. These deposits include monazite-rich beach sand resources containing approximately 13.15 million tonnes of monazite with about 7.23 million tonnes of rare earth oxides, spread across states such as Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Gujarat, Jharkhand and West Bengal. Additionally, three hard rock deposits in Rajasthan and Gujarat hold around 1.29 million tonnes of in-situ rare earth oxides.
Despite strong resource potential, India’s commercial-scale rare-earth mining and midstream processing have lagged, largely due to technological complexities and the lower grade of ores combined with associated radioactive elements. To address this, the government amended the Mines and Minerals Development and Regulation Act in 2023 to facilitate exploration and mining of 24 critical minerals, including rare earths, and has auctioned 46 critical mineral blocks with categories tailored to rare-earth extraction. Regulatory reforms, including streamlined environmental clearances, are also designed to accelerate project development.
Policy support and downstream manufacturing push
Building on upstream resource identification, the government is advancing downstream capacity with policy and incentive schemes. In November 2025, the Union Cabinet approved a ₹7,280 crore scheme to create 6,000 metric tonnes per annum of integrated Rare Earth Permanent Magnet (REPM) manufacturing capacity in India, covering the full value chain from rare-earth oxides to finished magnets. Dedicated rare-earth corridors identified in the 2026–27 Union Budget across Odisha, Kerala, Andhra Pradesh and Tamil Nadu are expected to further integrate mining, separation, processing, research and manufacturing infrastructure. These efforts align with the National Critical Mineral Mission and India’s broader push for strategic autonomy and clean-technology supply-chain resilience.
The expanded exploration and processing initiatives are designed to transform India from a net importer to a competitive supplier of rare-earth materials and magnets, a critical component in high-tech applications such as EV traction motors, wind turbines and aerospace systems.
