The Government of India has intensified efforts to achieve self-reliance in the production of rare earth elements (REEs), recognizing their critical importance in sectors such as electronics, renewable energy, and defense. Despite possessing approximately six percent of the world’s REE reserves, India currently produces less than one percent of the global supply. This disparity is partly due to the limited involvement of private entities in the REE sector, with the state-owned Indian Rare Earths Limited (IREL) holding a near-monopoly on production.
In a strategic move to bolster domestic REE production, the Indian government has launched its first-ever auction for critical minerals, including lithium and REEs. This initiative aims to attract private investment and expertise into the sector, thereby enhancing India’s self-sufficiency in these vital materials.
To further support the development of the critical minerals industry, the government plans to invest nearly $50 million in funding research institutes. This funding will assist miners with technical expertise in extracting critical minerals, aiming to reduce the country’s heavy reliance on imports of lithium and REEs. Collaborations between research institutes and companies will be eligible for up to 75% funding from the government to enhance extraction technology.
These concerted efforts reflect India’s commitment to achieving sustainable self-reliance in critical minerals, thereby strengthening its economic resilience and reducing dependence on external sources for essential materials.
