India Emerges As Key Player In Global Rare Earth Market Amid Clean Energy Surge
With 6 per cent of global reserves, India eyes technological self-reliance and sustainable growth in a billion-dollar REE opportunity
India is positioning itself as a credible alternative in the global rare earth element (REE) market, holding an estimated six per cent of the world’s reserves, according to a report by Kotak Mutual Fund. These 17 metallic elements are critical for electric vehicles, wind turbines, smartphones, and defence systems.
Though currently contributing less than 1 per cent of global REE production, India’s geological potential spans Kerala, Tamil Nadu, Odisha, Andhra Pradesh, and Gujarat, offering significant scope for expansion. The government has prioritised exploration, mining, and processing under the National Critical Mineral Mission (2025).
A key milestone came with the removal of IREL (India) from the US export control list, paving the way for enhanced international collaboration. IREL’s upcoming Visakhapatnam facility will produce samarium-cobalt magnets domestically, a step toward technological self-reliance.
India is also leveraging initiatives like Kabil (Khanij Bidesh India) and participation in the US-led Mineral Security Partnership (MSP) to assert its strategic and economic importance in the global critical mineral ecosystem.
Globally, China dominates the REE supply chain, accounting for roughly 70 per cent of mining and 90 per cent of refining. According to the International Energy Agency (IEA), China’s share is expected to fall to 51 per cent in mining and 76 per cent in refining by 2030, reflecting an international push to diversify supply chains.
India is encouraging private investment, research and development, and sustainable processing through reforms under the Mines and Minerals (Development and Regulation) Act (MMDR) and Production Linked Incentive (PLI) schemes. Demand for REEs is projected to rise 300-700 per cent by 2040, highlighting both the economic and environmental significance of developing domestic supply chains.
The Kotak report notes that rare earths are “quietly powering the shift toward cleaner energy, stronger economies, and a smarter, more sustainable world,” emphasising the sustainability angle of India’s growing role in the clean-tech sector.
As the global economy moves toward low-carbon energy and digital technologies, India’s rare earth push represents not only a mineral opportunity but also a pathway to industrial resilience, technological advancement, and strategic autonomy.
