Why Rare-Earth Elements Are Crucial for India 

Rare-earth elements (REEs) may sound like something very exotic, but they are quietly powering the modern world. From smartphones and electric vehicles to missiles and wind turbines, rare-earth elements are everywhere. In recent years, these elements have become a major topic in global politics, trade wars, clean energy transition, and national security. Countries like the United States, China, India, Japan, and members of the European Union are all racing to secure rare-earth supplies. But what exactly are rare-earth elements? Why are they so important? And why is India paying close attention to them now? This article explains rare-earth elements in simple words, their uses, global importance, and India’s position in the growing race.  

What Are Rare-Earth Elements? Rare-earth elements are a group of 17 chemical elements found in the Earth’s crust. Despite their name, they are not actually very rare, but they are difficult to find in large, usable concentrations. The 17 Rare-Earth Elements Include: 15 Lanthanides

(Lanthanum, Cerium, Neodymium, Dysprosium, etc.) Scandium Yttrium 

These elements have special magnetic, optical, and electrical properties, which make them extremely valuable for modern technology.  

Why Are They Called “Rare” If They Are Not Rare? Rare-earth elements are called “rare” because: They are not found in pure form They are spread thinly across rocks Extracting and processing them is costly and complex Mining causes environmental damage 

So, while rare-earth elements exist in many countries, very few nations can mine and process them efficiently.

Why Are Rare-Earth Elements So Important? 

Rare-earth elements are critical for modern life, clean energy, and defence systems. 1. Used in Everyday Technology Rare-earth elements are found in: Smartphones and laptops LED screens and flat-screen TVs Headphones and speakers Hard disks and cameras 

For example, neodymium and dysprosium are used to make strong permanent magnets for electronics.  

2. Essential for Clean Energy and Climate Goals Rare-earth elements play a major role in the green energy transition: Wind turbines use rare-earth magnets Electric vehicles need them for motors and batteries Solar panels use rare-earth materials Energy-efficient lighting depends on them 

Without rare-earth elements, achieving net-zero carbon targets would be very difficult.  

3. Critical for Defence and National Security Rare-earth elements are crucial for: Fighter jets Missiles and radar systems Submarines Satellite communication Night-vision devices 

This makes them a strategic resource, similar to oil or nuclear fuel.  

Why Is the World Racing for Rare-Earth Elements? 

1. China’s Dominance China currently controls: Around 60–70% of global rare-earth mining Nearly 90% of rare-earth processing 

This dominance gives China huge geopolitical leverage. In the past, China has restricted rare-earth exports, causing global concern.  

2. Supply Chain Vulnerability Most countries depend on China for rare-earth supplies. Any disruption due to: Trade wars Geopolitical tensions Export bans 

can severely impact industries like automobiles, defence, and renewable energy.  

3. Rising Demand Demand for rare-earth elements is increasing rapidly due to: Growth of electric vehicles Expansion of renewable energy Digitalisation and 5G Military modernisation 

According to experts, global demand could triple by 2030.  

Where Are Rare-Earth Elements Found? Major countries with rare-earth reserves include: China Vietnam Brazil Russia India Australia United States 

However, having reserves does not automatically mean dominance. Processing capacity is the real challenge.  

India’s Rare-Earth Potential 1. India’s Reserves India has about 6% of the world’s rare-earth reserves, mainly found in: Monazite sands along coastal areas States like: Odisha Andhra Pradesh Tamil Nadu Kerala  India is especially rich in light rare-earth elements.  

2. India’s Current Status Despite good reserves, India: Produces very little rare-earth material Depends on imports for high-end processing Lags behind China and Australia 

The main public sector agency involved is IREL (India) Limited, under the Department of Atomic Energy.  

3. Government Initiatives India is now taking steps to strengthen its position: Boosting domestic mining Encouraging private sector participation Partnering with countries like: Australia Japan United States 

Aligning with Quad cooperation on critical minerals Including rare-earths in Critical Minerals Mission 

These steps are aimed at reducing dependence on China.  

Challenges in Rare-Earth Mining 1. Environmental Concerns Rare-earth mining produces: Radioactive waste Water pollution Land degradation 

Balancing development with environmental protection is a major challenge.  

2. High Costs and Technology Gaps Processing rare-earths needs advanced technology Requires large investments India lacks large-scale commercial separation facilities   3. Regulatory Hurdles Coastal regulation laws Atomic energy rules Lengthy approval processes 

These slow down mining projects.  

Why Rare-Earth Elements Matter for India’s Future 

Rare-earth elements are vital for: Make in India Electric vehicle manufacturing Defence indigenisation Renewable energy goals Strategic autonomy 

If India successfully develops its rare-earth sector, it can: Reduce import dependence Create jobs Strengthen national security Become a global supplier   Rare-Earth Elements and Global Politics Rare-earths are now a tool of geopolitics, similar to oil in the 20th century. US-China tensions have increased focus on alternatives Countries are forming mineral alliances Supply chains are being “friend-shored” 

India’s role as a trusted democratic partner is becoming more important.  

Rare-earth elements are the hidden backbone of modern civilisation. They power our gadgets, enable clean energy, and strengthen national defence. As global demand rises and geopolitical tensions grow, rare-earths have become one of the most strategic resources of the 21st century. For India, rare-earth elements offer both a challenge and an opportunity. With the right policies, investments, and international partnerships, India can turn its natural reserves into strategic strength and play a key role in the global rare-earth supply chain.