India Boosts Rare Earth Exploration and Mining to Strengthen Supply Chain

Government pushes mining, processing, and manufacturing of rare earths with new initiatives and investments

India, Feb 04 : The Atomic Minerals Directorate for Exploration and Research (AMD), under the Department of Atomic Energy (DAE), is actively expanding the exploration and augmentation of rare earth minerals (REMs) across India, covering coastal and inland placer sands as well as hard rock terrains in several geologically promising regions, the government informed.

As of January 28, 2026, AMD has estimated 136 deposits of beach sand minerals, containing 13.15 million tonnes of monazite, a thorium and rare earth bearing mineral, spread across Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Maharashtra, Gujarat, Jharkhand, and West Bengal. These deposits hold approximately 7.23 million tonnes of in situ Rare Earth Oxide (REO) resources.

Additionally, three hard rock deposits in Rajasthan and Gujarat contain 1.29 million tonnes of in-situ REO resources. Monazite, being associated with radioactive elements like uranium and thorium, is a controlled substance, keeping mining, processing, and refining under strict government oversight.

According to Minister of Coal and Mines G. Kishan Reddy, India is among a select group of countries globally possessing the capacity, technology, and skilled workforce to handle rare earths. However, Indian deposits are generally low in grade, tied to radioactive elements, and predominantly contain light rare earth elements, making extraction complex, lengthy, and costly.

Despite adequate resources and extraction capabilities, commercial-scale mining and processing remain limited due to technological gaps and underdeveloped midstream and downstream industries in the rare earth value chain.

To boost domestic manufacturing, the Union Cabinet approved the “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets” in November 2025, with a financial outlay of ₹7,280 crore, aiming to establish 6,000 Metric Tons per Annum of integrated Rare Earth Permanent Magnet production in India.

The initiative reflects India’s strategic focus on self-reliance in rare earth minerals, essential for defense, green energy, electronics, and other high-tech sectors.

Atomic Minerals Directorate for Exploration and Research