Critical Minerals and Rare Earth Elements
India's Vulnerability
Rare earth elements (REEs) are foundational to the modern technology supply chain — from EV motors and wind turbines to defence guidance systems and consumer electronics. India's near-total dependence on China for processed rare earths is a strategic liability that the new FDI policy seeks to address.
- 17 Rare Earth Elements (REEs): include lanthanum, cerium, neodymium, praseodymium, dysprosium, terbium — essential for permanent magnets
- China controls ~69% of global REE mining, ~90-92% of global refining
- India imported 93% of its rare earth permanent magnets from China in FY 2024-25 (84.8–90.4% by volume)
- India has the world's 6th largest REE reserves (~6.9 million tonnes), concentrated in monazite sands in Kerala, Tamil Nadu, Odisha, and Andhra Pradesh
- November 2025: Cabinet approved Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets — ₹73 billion scheme targeting 6,000 MTPA over 7 years
- DPIIT now allows FDI in rare earth processing from LBCs under a 60-day timeline, enabling joint ventures with Chinese firms while maintaining Indian majority control
● Tracked since March 11, 2026 · last seen August 03, 2026 · updates as the daily brief publishes
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