As the world transitions toward cleaner technologies and digital connectivity, rare earth elements (REEs) have emerged as vital components in everything from electric vehicles and wind turbines to smartphones and defence systems and of course AI.
Currently, China dominates the global supply chain, accounting for over 60% of global rare earth production and an even greater share of refining capacity.
But India, rich in untapped reserves and increasingly assertive in its industrial strategy, is positioning itself to become a major player in this crucial sector.
India possesses the world’s fifth-largest reserves of rare earths, largely located in coastal monazite sands.
For decades, however, its output has remained modest, constrained by limited infrastructure, outdated regulations, and a lack of downstream processing capabilities. That is changing.
In recent years, the Indian government has taken clear steps to ramp up domestic production and attract investment.
One significant move was allowing private and foreign players into the exploration and processing of REEs -previously controlled by a single government-run firm.
Coupled with India’s broader push to diversify supply chains away from China, this signals a shift in ambition.
India is also pursuing strategic partnerships. Collaborations with countries such as Australia and Japan – both of which have rare earth expertise and a shared desire to counterbalance Chinese dominance – are paving the way for technology transfers and joint ventures.
Moreover, India’s participation in the Quad (with the U.S., Australia, and Japan) adds a geopolitical dimension to these efforts.
Challenges remain. India still lacks the sophisticated separation and refining technologies that make rare earths commercially viable. Environmental concerns around mining also demand a careful, sustainable approach.
Rare Earth Elements table – top 10 producers
Yet, with incentives under the Production-Linked Incentive (PLI) schemes, and growing demand for localised electronics and green tech manufacturing, momentum is building.
So, is India likely to become a major competitor? Not overnight. But ‘possible’ is rapidly morphing into ‘plausible.’ As the global rare earths map continues to shift—fueled by geopolitics, technological change, and strategic realignment – India is no longer on the sidelines.
Whether it becomes a global leader or a key alternative supplier, its role is poised to expand.
The world should watch closely—not just for the metals it may mine, but for the strategic leverage they may bring.
And we have Greenland and Ukraine reserves yet to be discovered?
