New Delhi : The Atomic Minerals Directorate for Exploration and Research, under the Department of Atomic Energy (DAE), has identified significant rare earth element (REE) resources across the country, reinforcing India’s resource base in critical minerals. This information was shared in the Rajya Sabha on April 2, 2026, by Union Minister of State (Independent Charge) for Science & Technology and Earth Sciences, Jitendra Singh.
According to official data, India holds around 7.23 million tonnes of in-situ Total Rare Earth Oxide Equivalent (TREO) contained in monazite deposits spread across states including Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. Additionally, about 1.29 million tonnes of REE resources have been identified in hard rock terrains in Gujarat and Rajasthan.
While India possesses substantial rare earth mineral resources, the country remains dependent on imports for rare earth magnets and related high-value products. This is primarily due to low-grade ores, complex extraction processes linked to radioactivity, environmental restrictions on mining, and limited domestic capabilities in the midstream value chain such as metals, alloys, and magnet manufacturing.
To address this gap, the Union Cabinet approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet’ in November 2025. The scheme aims to establish a production capacity of 6,000 metric tonnes per annum of rare earth permanent magnets in India, enhancing self-reliance and positioning the country as a key global player.
With a total outlay of ₹7,280 crore—including ₹6,450 crore in sales-linked incentives and ₹730 crore in capital subsidy—the initiative seeks to build a complete domestic value chain, from processing rare earth oxides to manufacturing finished magnets.
Rare earth permanent magnets are critical components used in electric vehicles, renewable energy systems, advanced electronics, aerospace, and defence technologies, making them strategically vital for India’s industrial growth.
As part of broader efforts, the government has also set up a Rare Earth Permanent Magnet plant in Visakhapatnam, Andhra Pradesh, for producing Samarium Cobalt magnets used in strategic sectors. In addition, the Union Budget 2026–27 has announced the development of dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.