SDG 7: Affordable and Clean Energy | SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure | SDG 13: Climate Action
Ministry of Mines | Ministry of Heavy Industries | Department of Atomic Energy (DAE) | IREL (India) Limited | Khanij Bidesh India Limited (KABIL)
India is aggressively building a self-reliant ecosystem for Rare Earth Permanent Magnets (REPMs), which are critical for EV motors, wind turbines, and defense technologies. A ₹7,280 crore REPM Manufacturing Scheme was approved in November 2025 to create 6,000 MTPA of integrated capacity. The financial roadmap includes:
₹6,450 crore in sales-linked incentives over five years.
₹750 crore capital subsidy for setting up advanced facilities.
This initiative aims to break the dominance of imports, which currently meet 85–90% of India’s magnet demand.
Dedicated Rare Earth Corridors To optimize domestic resources, the Union Budget 2026–27 announced Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. These corridors will serve as integrated hubs for mining, processing, research, and manufacturing. They will leverage India’s substantial resource base of 482.6 million tonnes of rare-earth ore identified by the GSI, including 13.15 million tonnes of monazite deposits.
Global Strategic Integration India’s strategy extends beyond its borders through active resource diplomacy:
Bilateral Accords: The Ministry of Mines has signed agreements with mineral-rich nations including Australia, Argentina, and Mozambique to secure long-term access.
Multilateral Alliances: Participation in the Minerals Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF) focuses on diversifying global supply chains.
KABIL’s Role: Through Khanij Bidesh India Limited (KABIL), India has secured five lithium brine blocks in Argentina for exploration and mining.
What is the significance of the “Monazite” deposits in India’s Rare Earth Strategy? Monazite is a critical mineral found in coastal beach sands, and India holds approximately 13.15 million tonnes of it. It contains an estimated 7.23 million tonnes of rare-earth oxides (REO). By leveraging the existing extraction plants of IREL (India) Limited in Odisha and Kerala, the new corridors will transform this raw monazite into high-purity rare-earth elements needed to manufacture the integrated sintered magnets required for high-tech industrial applications.
What is the National Critical Minerals Mission (NCMM) mentioned in India’s Rare Earth Strategy? Approved in January 2025, the National Critical Minerals Mission (NCMM) is a dedicated institutional framework designed to secure India’s supply chains for 30 identified critical minerals, including rare earth elements. It coordinates domestic exploration through the Geological Survey of India, facilitates overseas asset acquisition via KABIL, and fosters the development of advanced processing and recycling technologies. The mission serves as the policy backbone for the newly announced Rare Earth Corridors, ensuring that mining and manufacturing align with the national goals of “Atmanirbhar Bharat” and the “Net Zero 2070” vision.
Policy Relevance
The Rare Earth Strategy represents a pivot toward strategic material sovereignty.
Net Zero Alignment: Localizing REPM production is mandatory for achieving India’s Net Zero 2070 vision, as these magnets are the “heart” of green energy hardware like EV motors and offshore wind turbines.
Decentralized Industrialization: The corridor-based approach in four coastal states ensures that mineral-rich regions become centers for high-value R&D and manufacturing rather than just raw material exporters.
De-risking Supply Chains: By opening exploration to private participation through the MMDR Act (2023) and establishing the National Critical Minerals Mission (2025), the government is creating a multi-layered defense against global supply disruptions.
Relevant Question for Policy Stakeholders: How can the Ministry of Heavy Industries and the Department of Atomic Energy collaborate to ensure that the 6,000 MTPA capacity created under the REPM scheme is primarily absorbed by domestic EV manufacturers to boost local value addition?
Follow the full news here: India’s Rare Earth Strategy: Manufacturing, Corridors, and Global Integration