Blitz Bureau
NEW DELHI: India holds 8 per cent of the world’s rare earth element reserves, which gives it the potential of playing a key role in the gradually evolving global supply landscape as China’s current dominance is projected to decline, according to a CareEdge report, filed by IANS. While China currently plays a leading role in both mining and refining, its projected share is expected to decrease from 69 per cent to 51 per cent in mining and from 90 per cent to 76 per cent in refining by 2030, as per the International Energy Agency.
This trend reflects a broader international effort to develop more balanced and resilient supply chains. Despite India’s huge reserves, the country contributes less than 1 per cent of global Rare Earth Element (REE) mining, which prompted the Government to launch the National Critical Mineral Mission (NCMM) to build India’s self-reliance in the mineral sector. India has recognised 130 deposits as of the 2023 Indian Minerals Yearbook, of which the coastal states – Tamil Nadu, Kerala, Andhra Pradesh, and Odisha – have the most rare earth deposits.
The recent curbs by China on REE exports have made Indian Rare Earths Limited (IREL), a Central Government undertaking, consider reducing its exports to save rare earths in the home country and expand domestic processing, the CareEdge report pointed out. While India has the third-largest share of global reserves of REE, it still has a long way to go to emerge as a significant global producer of REE. The Government is developing domestic manufacturing capabilities and is considering offering companies a production-based fiscal incentive.
