The Importance of Rare Earth Elements and India's Role in 2023

What Are Rare Earth Elements and Their Importance?

Rare earth elements (REEs) comprise a group of 17 metallic elements, including 15 lanthanides, along with scandium and yttrium. These elements are crucial for various modern technologies, such as electronics, defense systems, medical devices, and green energy products like wind turbines and electric vehicles due to their unique magnetic, catalytic, and optical properties.

Why Are They Called 'Rare'?

Although REEs are not scarce in terms of quantity, they are rarely found in concentrated and economically viable deposits. Extracting and separating these elements poses significant technological challenges and environmental risks, leading to limited availability.

Main Sources and Classifications of REEs

REEs are primarily extracted from minerals like monazite, bastnasite, and loparite. They can be classified into two categories:

• Light REEs (LREEs): Examples include Lanthanum, Cerium, and Neodymium.
• Heavy REEs (HREEs): Examples include Dysprosium, Terbium, and Ytterbium. HREEs are generally rarer and hold greater strategic value.

Global Reserves and Production of REEs

According to the United States Geological Survey (2025):

• China: Holds 44 million metric tonnes (MMT) in reserves and produced 270,000 metric tonnes in 2024, dominating the global supply chain.
• Brazil: Follows with 21 MMT of reserves.
• India: Holds the third-largest reserves, estimated at 6.9 MMT, primarily in monazite sands located in Andhra Pradesh, Odisha, Kerala, and Tamil Nadu.

India's Share in Global REE Production

Despite possessing 6.9 MMT in reserves, India contributes less than 1% to global REE production. Most Indian reserves consist of light REEs, while heavy REEs, which are essential for high-tech applications, are relatively limited.

Challenges in India's REE Production

• Technological limitations in extraction and refining processes.
• Lack of private sector involvement.
• Strict environmental regulations due to the presence of radioactive thorium in monazite.
• Dependence on public sector miner IREL (India) Ltd.

Steps Taken by the Indian Government

• Amended the Mines and Minerals (Development and Regulation) Act, 1957 in 2023 to classify REEs as Critical Minerals.
• Launched the National Critical Mineral Mission in 2025 to secure supply chains.
• Opened exploration opportunities to private entities.
• Formed international partnerships with countries like Australia and the US for collaboration in REEs.

Significance of the National Critical Mineral Mission

This mission aims to ensure self-reliance in critical mineral supply, reduce dependency on imports, and enhance India's role in global supply chains, particularly concerning clean energy and defense technologies.

Benefits of Boosting REE Production for India

• Strengthens clean energy goals by ensuring domestic supply for EVs and wind turbines.
• Supports defense manufacturing by securing essential components for avionics and guided weapons.
• Enhances the electronics industry by decreasing import dependency.
• Promotes strategic autonomy in high-tech and digital infrastructure development.

Environmental and Geopolitical Concerns

• Mining activities can generate radioactive waste, dust, and water pollution.
• Increased global demand has resulted in resource nationalism and trade tensions, as demonstrated by China's export restrictions during trade conflicts.
• There is a rising need for sustainable extraction practices and e-waste recycling.

Conclusion

India possesses the third-largest reserves of rare earth elements, which are essential for modern technology. However, it currently contributes less than 1% to global production due to various technological and regulatory barriers. Recent policy reforms and the launch of the National Critical Mineral Mission in 2025 aim to increase REE output, reduce import reliance, and enhance India's position in clean energy, defense, and electronics value chains. As emphasized, "Strategic autonomy is not given—it is built with technology, minerals, and will."

Frequently Asked Questions (FAQs)

Q1. What are rare earth elements?
Answer: Rare earth elements (REEs) are a group of 17 metallic elements essential for various technologies, including electronics, defense, and green energy products.

Q2. Why are rare earth elements considered rare?
Answer: They are termed 'rare' not due to low abundance but because they are difficult to find in concentrated and economically viable deposits.

Q3. What is the significance of the National Critical Mineral Mission in India?
Answer: The mission aims to enhance self-reliance in critical mineral supply, reduce import dependence, and strengthen India's role in global supply chains for clean energy and defense technologies.

Q4. How does India's production of REEs compare globally?
Answer: India holds significant reserves of REEs but contributes less than 1% to global production due to technological and regulatory barriers.

Q5. What are the environmental concerns associated with REE mining?
Answer: Mining can lead to