India, the world’s third-largest reserve holder of rare earth elements, is bolstering its domestic mining and refining capabilities to tap into its vast reserves and provide an alternative to China, which dominates the global supply. Experts say that with significant public and private investment, India can play a key role in building a diversified global rare earths supply chain.
The recent shortage of rare earths caused by China’s restrictions on exports has highlighted India’s potential as a supplier. The country has substantial reserves of 6.9 million tons, making it the third-largest share behind Brazil and China’s 44 million tons. Additionally, India has nearly 35% of the world’s beach and sand mineral deposits, which are significant sources of rare earths.
However, building domestic capabilities quickly is a challenging task. India lacks advanced separation and refining technology, as well as specialized technical expertise in REE mining and processing, compared to China, the US, and Japan. To address this, the Indian government launched the National Critical Mineral Mission in 2025, aiming to develop an effective framework for REE self-reliance.
The government is also considering private sector collaboration with state-owned IREL, including government incentive schemes and capital subsidies, to encourage local mining and processing. With booming domestic demand across technology sectors, including electric vehicles, electronics, and defense, India’s dual role as a supplier and consumer creates a favorable environment for investment in building domestic capabilities.
While India cannot replace China’s dominant position in the market, it can provide a new source of rare earths. Commerce Minister Piyush Goyal said that India is searching for alternative REE sources outside China, and a delegation of Indian auto industry representatives will visit China to expedite their imports of rare earth magnets.
Source: https://www.cnbc.com/2025/06/13/india-moves-to-tap-its-rare-earth-reserves-can-it-ease-reliance-on-china.html