India Ranks Third in Rare Earth Reserves but Lags in Global Production

India holds a strong position in rare earth mineral reserves, yet its production remains very low. A recent report highlights a sharp mismatch between resource availability and actual output. This gap has important implications for strategic industries, clean energy, and national security.

What Are Rare Earth Elements (REEs)?

Rare earth elements are a group of 17 critical minerals.

They are essential for,

• Electric vehicles and wind turbines
• Mobile phones and electronics
• Defense systems and missiles
• Permanent magnets and batteries

Despite their name, they are not rare, but difficult to mine and process.

India’s Position in Global Rare Earth Reserves

According to the report, India ranks 3rd globally in rare earth reserves.

Key data

• India: 6.9 million tonnes of rare earth oxide (REO)
• China: 44 million tonnes
• Brazil: 21 million tonnes

Other countries with notable reserves include Australia, Russia, Vietnam, and the United States.

India holds about 6-7% of global reserves.

India’s Rare Earth Production Status

Despite large reserves, India’s production is very limited.

Production data (2024)

• India: 2,900 tonnes (7th globally)
• China: 270,000 tonnes (global leader)
• United States: 45,000 tonnes
• Myanmar: 31,000 tonnes

India contributes less than 1% of global production, showing a major structural weakness.

Where Are India’s Rare Earths Found?

• Most Indian reserves are located in monazite-rich coastal sands.
• These sands are mainly found along the eastern and southern coasts.
• Monazite also contains thorium, a radioactive element.
• This makes mining and processing technically complex and heavily regulated.

Structural Bottlenecks in India

The report highlights several key challenges.

Regulatory Constraints

• Rare earth mining in India has long been tightly regulated.
• Production was mainly handled by Indian Rare Earths Limited (IREL).
• REEs were treated as by-products, not as strategic resources.

Processing and Refining Gap

• Mining alone is not enough.
• Processing and refining are the biggest bottlenecks.
• China controls about 90% of global rare earth refining capacity.
• It also dominates heavy rare earth processing, giving it value-chain control.
• India has very limited refining infrastructure.

Recent Developments in India

A Japan linked joint venture in Visakhapatnam has marked India’s return to the sector.

• However, the scale remains small and insufficient to impact global markets.
• The report stresses that India’s challenge is execution, not resources.

Key Takeaways

• India ranks 3rd in rare earth reserves globally
• Holds 6-7% of global reserves
• Contributes <1% of global production
• China controls nearly 90% of refining capacity
• Main challenges: regulation, processing, value-chain gaps

Question

Q. India ranks third globally in rare earth reserves but contributes what share to global production?

A. About 5%
B. About 3%
C. Less than 1%
D. Around 10%