India’s Position in Rare Earth Elements: The Backbone Modern Technology
- TPP
- May 3
- 5 min read
Updated: May 5

As tensions escalate in the ongoing US-China trade war, China has once again flexed its monopoly muscle by suspending the export of Rare Earth Elements (REEs). These elements are critical to a wide range of technologies—from smartphones and semiconductors to electric vehicles and defence equipment. This move has spotlighted global vulnerabilities and raised a pressing question: What is India’s position in the global REE landscape?
But before we explore India’s share, it’s important to understand what REEs are and why they matter so much in today's technology-driven world.

What Exactly Are Rare Earth Elements (REEs)?
Rare Earth Elements, as defined by the International Union of Pure and Applied Chemistry (IUPAC) in 2005, refer to a group of 17 chemically similar elements. These include 15 lanthanides along with scandium and yttrium. Though the name suggests rarity, REEs are relatively abundant in the Earth’s crust. However, they are seldom found in concentrations that make extraction economically viable, which is why their mining and processing remain technologically complex and expensive.
These elements are mainly extracted from minerals such as bastnasite, loparite, and monazite. Based on their atomic numbers and properties, they are grouped into two categories:
Light Rare Earth Elements (LREEs): Also known as the Cerium group.
Heavy Rare Earth Elements (HREEs): Known as the Yttrium group.
Due to the intricate and costly processes involved, there exists a significant gap between the global reserves of REEs and their actual production.

Why Are REEs Called the 'Seeds of Technology'?
Since their discovery in 1788, rare earth elements have slowly embedded themselves into various facets of human life. The first commercial application came with the use of cerium oxide in incandescent lamp mantles. REEs later found utility in sunglasses and geological studies.
However, over the last three decades, REEs have become indispensable due to the rapid rise of advanced technologies. Today, they are crucial to:
Consumer Electronics: Smartphones, computer displays, LED lights, and televisions.
Healthcare: MRI agents, X-ray machines, and cancer treatment technologies.
Defence Systems: Lasers, avionics, radars, aircraft engines, and guided missiles.
Green Technologies: Electric vehicles, wind turbines, and smart batteries, owing to their unique magnetic and conductive properties.
With the global push for clean energy, digital infrastructure, and high-end defence systems, the demand for REEs is expected to grow exponentially—earning them the title of “backbone of modern technologies.”

Where Are REEs Found? Global Hotspots and Reserves
REEs are unevenly distributed across the planet, and some nations have emerged as key players due to their vast reserves and production capacities.
China: The Global Giant
Reserves: 44 million metric tons
Production (2025): 2,70,000 metric tons (Annual)
Global Production Share: Over one-third of the world’s total REE output (390,000 metric tons)
China’s Bayan Obo deposits in Inner Mongolia have allowed it to dominate the REE market since the 1990s. Between 1985 and 1995, China increased its REE production from 8,500 to 50,000 metric tons, expanding its global share from 21% to 60%. Low production costs and advanced technology have made China the REE superpower, a position it has used strategically—most notably against Japan in 2010 and recently against the United States.
Other Major Reserve Holders
Brazil: 21 million metric tons (2nd largest global reserves)
USA: 1.9 million metric tons
Once the world leader in REE production during the 1970s and 1980s due to California’s reserves, the US saw a decline in production in the 1990s due to environmental and regulatory concerns.
India’s Position: A Sleeping Giant in the REE Sector?
India holds the third-largest reserves of REEs in the world, estimated at 6.9 million metric tons. These reserves are concentrated mostly in the states of Andhra Pradesh, Odisha, Karnataka, and Kerala. Among these, the monazite-rich sands of Kerala are particularly valuable. Monazite, which contains thorium along with rare earth elements, is India’s primary source of REEs.
Key Figures (as per Indian Mineral Yearbook, 2023):
Estimated Monazite Resources (March 2021): 12.73 million tonnes
State-wise Distribution:
Andhra Pradesh: 3.78 million tonnes (largest share)
Followed by Odisha, Tamil Nadu, and Kerala
While India has vast reserves, its actual share in global production is less than 1%. This underperformance is due to several challenges:
Lack of Private Sector Participation:
The mining and processing of REEs in India have largely been under the control of IREL (India) Ltd. However, recent policy changes have opened the sector to private players.
Technological and Infrastructure Gaps:
Extraction and processing require sophisticated technologies, which are still underdeveloped in India.
Environmental and Regulatory Hurdles:
Monazite contains thorium, a radioactive material. Its extraction is heavily regulated due to safety and environmental concerns.
Recent Policy Interventions:
2023: Amendment to the Mines and Minerals (Development and Regulation) Act, 1957, bringing REEs under the list of “Critical Minerals.”
2025: Launch of the National Critical Mineral Mission, aimed at securing India's supply of essential minerals.
International Collaborations: Agreements with Australia and the United States to boost cooperation on critical mineral resources.
Challenges in REE Production and the Road Ahead
Although REEs are key to clean technologies, their production is far from environmentally friendly. It results in:
Dust and wastewater pollution
Generation of radioactive waste
Negative impacts on local ecosystems and human health
Additionally, increasing geopolitical tensions have triggered resource nationalism and heightened risks of supply chain disruptions.
For India, this scenario presents both a challenge and an opportunity. By accelerating its domestic REE production and improving technological capacities, India can secure its aspirations for energy independence, defence self-reliance, and technological innovation.
A Sustainable Way Forward
Innovation in eco-friendly mining techniques
Expansion of public-private partnerships
Recycling of electronic waste (urban mining) to extract REEs can be a game-changer in reducing dependency on imports and minimizing environmental harm.
Seventeen REEs: 15 lanthanides plus scandium (Sc) and Yttrium (Y)
S. No | Element | Symbol |
1. | Lanthanum | La |
2. | Cerium | Ce |
3. | Praseodymium | Pr |
4. | Neodymium | Nd |
5. | Promethium | Pm |
6. | Samarium | Sm |
7. | Europium | Eu |
8. | Gadolinium | Gd |
9. | Terbium | Tb |
10. | Dysprosium | Dy |
11. | Holmium | Ho |
12. | Erbium | Er |
13. | Thulium | Tm |
14. | Ytterbium | Yb |
15. | Lutetium | Lu |
16. | Scandium | Sc |
17. | Yttrium | Y |
As the global tech race intensifies and the world seeks cleaner, smarter solutions, Rare Earth Elements have become strategic resources. India, with its significant reserves and policy momentum, has the potential to become a key player in the REE ecosystem. But this will require robust investment, sustainable practices, and international collaboration to unlock the full potential of these “seeds of modern technology.”
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