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Home > International > Rare Earth Revolution Chinas Grip Weakens, India Rises as a Superpower!
International

Rare Earth Revolution Chinas Grip Weakens, India Rises as a Superpower!

Published: Jul 09, 2025

International News: China currently controls nearly 90% of the world’s rare earth magnet supply, crucial for electric vehicles and defence systems. In April 2025, it imposed new export restrictions on terbium and dysprosium, sparking global disruption. Mining may shrink by 51% by 2030. India holds 6.9 million tonnes of rare earths, or 8% of global reserves, ranking third worldwide. Yet its annual production is just 2,900 tonnes. Changing policies and geopolitical tensions are now pushing India to ramp up exploration and processing at scale.

Government Strategy Takes Shape

The Indian government is partnering with IREL and private firms to increase rare earth mining. States like Odisha, Andhra Pradesh and Kerala are under focus for monazite-rich coastal sands. New policies aim to ease mining norms and attract global investment. The Atomic Energy Act, 1962 restricts private firms from mining monazite, labelling it a "prescribed substance." This limits output despite massive reserves. Only public sector units are currently allowed, a hurdle India must address to realise its full potential.

Forging Global Supply Links

India and Australia signed an MoU in 2022 to cooperate on critical minerals. CSIRO-led joint research will continue till 2026. Strategic alignment with QUAD nations and recycling efforts are boosting India’s chances of becoming a key global supply chain player. After China cut exports in 2010, Japan invested $450 million in Australia’s Lynas Rare Earths. Its dependency dropped from 90% to 58%. India is now eyeing similar ties to diversify imports and strengthen national security and economic resilience.

The NCMM and India’s Roadmap

The National Critical Mineral Mission (NCMM), launched in 2025, represents a major leap forward in India’s strategy to become self-reliant in rare earth minerals. This ambitious mission focuses on transforming the entire lifecycle of critical minerals—from mining and refining to recycling and sustainable use. By 2030, the government plans to initiate over 1,200 projects that will strengthen India's supply chain and reduce dependence on imports. The mission not only targets increasing domestic production but also emphasizes cutting-edge research and development to improve processing technologies. Close collaboration with organizations like IREL (Indian Rare Earths Limited) and international partners is key to this vision, bringing in expertise and investment. Additionally, NCMM promotes environmentally responsible mining practices to protect biodiversity and local communities.

India’s Bold Mission for Rare Earth Independence

The initiative also aims to build infrastructure for recycling rare earth elements from electronic waste, supporting a circular economy. This comprehensive approach positions India to become a global leader in rare earth minerals, crucial for industries such as electric vehicles, renewable energy, and defense technologies. By fostering innovation and strategic partnerships, NCMM hopes to unlock India's vast mineral potential and secure its economic and technological future.

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