India Strengthens Rare Earth Mining To Support CleanTech Growth
India is intensifying its pursuit of rare earth minerals — critical inputs for emerging clean-technology, defence and advanced manufacturing industries — by expanding exploration, mining and downstream processing efforts across the country. In a written response to the Rajya Sabha, the government outlined plans to scale up geological surveys, streamline approvals and boost value-addition capacities, signalling a shift in policy that goes beyond raw extraction to encompass an integrated minerals value chain.
Rare earth elements (REEs), a group of 17 metals essential to technologies ranging from electric vehicle motors to wind turbines and precision defence equipment, have increasingly become a strategic priority for policymakers as global supply chains grapple with concentration risks and geopolitical bottlenecks. Traditionally dominated by a few countries, notably China, the global rare earths landscape has exposed India’s reliance on imports, even as domestic reserves are known to span beach sands and hard rock terrains in states such as Odisha, Tamil Nadu and Andhra Pradesh.In parliament, the Minister of Coal and Mines confirmed that the Atomic Minerals Directorate for Exploration and Research (AMD) is actively mapping and augmenting rare earth prospects across potential geological domains, including coastal placer sands and inland rock formations. The scale of these resources has expanded through government assessment, underscoring a substantial domestic base that can feed future processing facilities.
The exploration push fits within the broader National Critical Mineral Mission (NCMM), a policy framework approved by the Union Cabinet that aims to secure long-term availability of strategic minerals and strengthen India’s downstream capabilities from mining through processing to finished applications. Complementary to this, a dedicated scheme for rare earth permanent magnets (REPM) — vital components in electric vehicles and renewable energy generators — allocated significant fiscal incentives and capital support for manufacturing capacity development.A key dimension of the strategy is the planned establishment of Dedicated Rare Earth Corridors, announced in the Union Budget 2026–27, covering mineral-rich states including Odisha, Kerala, Andhra Pradesh and Tamil Nadu. These corridors are intended to link extraction, beneficiation, research, processing and advanced manufacturing into integrated supply clusters — a model designed to reduce import dependence and foster regional industrial ecosystems.
Industry stakeholders and urban planners see this policy thrust as pivotal for India’s broader clean technology and infrastructure ambitions. Rare earth permanent magnets play a central role in electric mobility, renewable energy systems and smart grid technologies — sectors that support sustainable urban growth and climate resilience. Enhancing domestic capacity in these materials could strengthen manufacturing competitiveness and reduce vulnerabilities tied to external supply shocks.However, observers caution that effective implementation will require balancing environmental safeguards with mining expansion, especially in ecologically sensitive zones. Integrating best practices in extraction and processing, alongside rehabilitation and community engagement frameworks, will be critical to ensure that resource development aligns with environmental and social governance (ESG) standards.
As India navigates its ambitious industrial and clean-energy transitions, building a robust rare earth value chain — from discovery to manufacturing — offers both economic opportunity and strategic autonomy. The coming years will test how policy, technology, and private sector engagement converge to make these strategic minerals a cornerstone of India’s sustainable growth trajectory.
