GK Reddy, Union Minister of Coal and Mines
| Photo Credit:
SIDDHANT THAKUR
India holds 7.23 million tonnes (mt) of rare earth elements oxide (REO) in 13.15 mt of monazite deposits across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra, said GK Reddy, Union Minister of Mines, in the Rajya Sabha on Monday.
According to him, an additional 1.29 mt of rare earth element oxide has been found in hard rock deposits in Gujarat and Rajasthan. The numbers are now significantly higher than the earlier estimates of 6.99 mt.
Incentive schemes
Incentive schemes are also being worked out to aid processing of these minerals.
“[There are] 7.23 mt approximately of in-situ rare earth elements oxide (REO) contained in 13.15 mt of monazite, a mineral of thorium (10 per cent ThO2) and rare earths (55 per cent REO) occurring in coastal beach, teri/ red sand and inland alluvium…,” the Minister informed.
“As per DAE (Department of Atomic Energy), mining is feasible for these resources,” Reddy added. Rare earth elements are primarily found on the Earth’s crust within various minerals and deposits.
They are not typically found in isolation, but rather as components of other minerals, such as monazite, bastnaesite, and xenotime.
These are minerals found in both hard rock deposits — cabonatites and alkaline igneous rocks; and weathered deposits like ion absorption clays and mineral sands.
Crucial component
India has been on a rare earth element hunt over the last few months since China imposed export curbs on the mineral. A critical mineral, used mostly for REE magnet making, it is key component in energy storage solutions, EVs, renewables and defence.
The vehicle-makers have already raised concerns over supply shortage, forcing the government to take note and start discussions on the issue.
While an inter-ministerial committee – of mines, heavy industries, commerce, department of atomic energy, among others – has been set up, discussions are underway with other countries for upping supply chains of rare earth elements. Attempts are also on to commercialise available rare earth element processing tech.
Processing and sale
Currently, in India, the IREL – under DAE – is the only agency which is into mining, processing, and sale of rare earth element oxides.
“The Atomic Minerals Directorate for Exploration and Research (AMD), a constituent unit of DAE, is carrying out exploration and augmentation of rare earth group elements along coastal/inland/riverine placer sands, as well as in hard rock terrains in several potential geological domains in the country,” said Reddy.
Additionally, the Geological Survey of India (GSI) has augmented 482.6 mt resources of REE ore at various cut-off grades in 34 exploration projects, the Minister added.
According to him, the National Critical Mineral Mission has been set up, and it includes “key interventions for increasing domestic capacity and building supply chain resilience” for critical minerals, including rare earth elements.
“A scheme for promotion of critical minerals recycling through incentivisation of eligible recyclers, including MSME units and start-ups is a part of this mission,” he said.
Published on July 21, 2025