
Rare-earth minerals are the backbone of the clean energy revolution, essential for technologies ranging from wind turbines and solar panels to batteries for electric vehicles (EVs). For India, a country that aims to position itself as both a green energy hub and a manufacturing powerhouse, securing reliable access to these critical resources is not just an economic priority but also a national security imperative. Currently, over 80% of global rare-earth processing is concentrated in China, making India heavily dependent on imports. In this context, five strategic policy pillars can help India achieve self-reliance in rare-earths while sustaining its climate and industrial ambitions.
1. Domestic Exploration and Extraction
India possesses significant rare-earth reserves—estimated at nearly 6% of global deposits, concentrated in states like Odisha, Kerala, and Andhra Pradesh. However, most of these remain underexplored or underutilized due to technological and regulatory gaps. Expanding domestic exploration through geological surveys, mapping, and public-private partnerships is crucial. Advanced technologies such as AI-driven mineral exploration and eco-friendly extraction methods can help India accelerate resource identification while minimizing environmental risks. Without tapping domestic reserves, India’s vulnerability to external supply shocks will persist.
2. International Collaboration and Strategic Partnerships
Given the geopolitical complexities of the rare-earth supply chain, India cannot operate in isolation. Collaborations with resource-rich countries like Australia, Vietnam, and African nations can diversify supply sources. At the same time, partnerships with technologically advanced economies like Japan, the U.S., and the EU can strengthen India’s processing and refining capabilities. India’s participation in plurilateral frameworks such as the Quad Critical and Emerging Technology Working Group offers an opportunity to embed itself in global rare-earth supply networks, reducing overdependence on any single country.
3. Incentivizing Private-Sector Participation
So far, India’s rare-earth ecosystem has been dominated by state entities such as Indian Rare Earths Limited (IREL). While these institutions play a vital role, scaling up extraction, processing, and downstream applications requires greater private-sector involvement. Incentives in the form of tax breaks, production-linked incentives (PLI), and risk-sharing mechanisms can attract domestic conglomerates and startups into the sector. At the same time, transparent auction systems for mining rights and long-term offtake agreements can provide confidence to investors. Lessons from India’s renewable energy sector show how private participation can accelerate growth when backed by the right policy mix.
4. Investment in Research and Development (R&D)
Rare-earth processing is highly complex, often involving hazardous byproducts and requiring specialized technology. India’s R&D institutions must be tasked with developing low-cost, environmentally sustainable processing techniques. Initiatives like setting up dedicated National Rare-Earth Research Centers could link universities, CSIR laboratories, and industry. Equally important is research into substitutes for critical minerals, recycling from e-waste, and innovations in battery chemistry that reduce dependence on rare-earths altogether. Without long-term R&D investment, India risks being locked into costly and polluting legacy technologies.
5. Regulatory Clarity and Environmental Safeguards
Policy uncertainty is one of the biggest barriers to growth in India’s mining and processing sectors. A clear regulatory framework—covering licensing, environmental norms, and export-import policies—will provide stability for both domestic and foreign investors. At the same time, sustainability must remain central. Rare-earth mining can cause severe ecological damage if not managed responsibly. India needs strict environmental safeguards, transparent impact assessments, and community participation models to ensure that local populations benefit rather than suffer from mineral projects. A balance between growth and green standards will determine the long-term legitimacy of India’s rare-earth policy.
Securing rare-earth self-reliance is not a single-step initiative but a long-term strategy that integrates exploration, global cooperation, private innovation, scientific advancement, and responsible regulation. For India, these five pillars are not just about resource security—they are about energy independence, industrial competitiveness, and climate leadership. In an era where supply chains are weaponized and technology races define global power, building resilience in critical minerals may prove as decisive for India’s future as oil once was for the 20th century.#RareEarth
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