India Steps Up Rare Earth Security With 1,200 Exploration Projects, Global Acquisitions

India is stepping up efforts to secure a reliable supply of rare earth elements (REEs) and critical minerals to mitigate possible disruptions amid growing global tensions and export restrictions by China. It noted that minerals like lithium, cobalt, nickel and rare earth elements are vital for solar panels, wind turbines, electric vehicles and energy storage systems.

The latest Monthly Economic Review for May from the Ministry of Finance flagged China's recent move to curb rare earth exports as a “concerning development” with potential to disrupt the global supply of minerals essential to electric vehicles, defence technologies, wind turbines, and solar panels. In response, India is accelerating its domestic exploration, processing and international partnerships in what is now clearly a resource-driven geopolitical contest.

The ministry said that the National Critical Mineral Mission (NCMM), launched in January 2025, is central to this strategy. With a seven-year roadmap running until 2030-31, the mission aims to secure critical minerals through 1,200 domestic exploration projects and support for overseas acquisitions by both PSUs and private entities.

To diversify supply sources, India is also expanding offshore exploration and forging international partnerships, including with Argentina and Australia. Further, India has joined the US-led Mineral Security Partnership (MSP), becoming the only developing country in the 14-member bloc.

India is also investing abroad in exploring and acquiring critical mineral assets in resource-rich countries. The report underlined that a Joint Venture, Khanij Bidesh India (KABIL), has been incorporated to acquire critical mineral assets abroad. Under the NCMM mission, the Geological Survey of India (GSI) has also intensified its exploration programmes.

Domestically, legal reforms are underway to speed up exploration and licensing. The amended Minerals (Evidence of Mineral Contents) Rules, notified this month, provide tailored guidelines for rare earth exploration based on the type of mineralisation—pegmatite, carbonatite or igneous rocks—making the auction process more scientific and time-bound.

The government is also investing in research and value addition. State-run IREL (India) Ltd, with a processing capacity of six lakh tonnes per year, is being positioned as a key R&D and export channel for atomic minerals. Additionally, Centres of Excellence under NCMM will spearhead technology development for mineral extraction and recycling.