India Strengthens Rare Earth Strategy to Support Clean Tech and Defence

India is not dependent on China for accessing rare earth minerals found in beach sand minerals (BSM) , Union Minister of State Dr. Jitendra Singh informed Parliament , underscoring the country’s efforts to secure critical resources. In these beach sand deposits, monazite a phosphate mineral containing rare earth elements along with uranium and thorium serves as the principal ore. The statement reflects India’s growing confidence in domestic reserves even as global competition for these strategic materials intensifies.

State-run IREL (India) Limited , operating under the Department of Atomic Energy , plays a central role in the ecosystem by producing high-purity rare earth oxides from monazite. The PSU runs integrated mining and mineral processing facilities at three locations , along with dedicated plants for extraction and refining of rare earth elements , helping build an end-to-end domestic value chain.

To further strengthen capabilities in strategic sectors, a Rare Earth Permanent Magnet plant at Visakhapatnam has been operationalised to manufacture Samarium Cobalt magnets , widely used in high-performance technologies. In addition, IREL has set up mini plants for Lanthanum, Cerium, and Neodymium metals at the Rare Earth & Titanium Theme Park in Bhopal , while a rare earth recycling facility there focuses on recovering valuable magnetic materials from end-of-life magnets , promoting resource efficiency.

In a major policy push, the Union Cabinet approved a ₹7,280-crore scheme in November 2025 to promote domestic manufacturing of Sintered Rare Earth Permanent Magnets (REPM) . The programme aims to create 6,000 metric tonnes per annum of integrated manufacturing capacity through global competitive bidding under a transparent Least Cost System . The scheme includes a ₹6,450-crore sales-linked incentive and a ₹750-crore capital subsidy , signalling strong government backing.

The initiative is expected to reduce import dependence for critical industries such as electric mobility, renewable energy, electronics, and defence , while also generating employment and strengthening domestic supply chains . As rare earth minerals increasingly shape technological leadership and economic security worldwide, India’s expanding mining, processing, and manufacturing infrastructure marks a significant step toward strategic self-reliance .