India’s Rare-Earth Push: “We Can Get There—But It’ll Take a Decade”

India wants to become a rare-earth powerhouse. But how realistic is it for the country to mine, process and manufacture everything from magnets to metals on its own soil? Arun Misra, Executive Director at Vedanta Limited and CEO of Hindustan Zinc, has been closely tracking India’s play in critical minerals. He spoke to Outlook Business about the technical, financial, and policy hurdles India must overcome—and the opportunity that awaits if it does. 

Q. Rare-earth elements are often described as one of the most complex materials to process. Why is that? 

ARUN MISRA: The difficulty starts at the source. Rare-earth elements don’t occur in concentrated form. They’re scattered in low percentages—often under 10%—within minerals like bastnäsite and monazite. Plus, they occur together, so you don’t just extract one; you have to separate a whole bunch of them that are chemically very similar. 

And many of these ores contain radioactive elements like thorium or uranium, which require specialised handling and disposal. So, it’s not just about extraction—it’s about safe, precision chemistry done at scale. That makes rare-earth processing fundamentally different from working with conventional metals. 

Q. The capital costs are said to be massive. What makes these facilities so expensive to set up and run? 

MISRA: The costs come from three directions. First, the process itself needs complex equipment—flotation tanks, solvent extraction units, high-end control systems. 

Second, you need world-class environmental and safety systems, especially if you’re dealing with radiation. That means containment infrastructure, waste handling protocols, and robust compliance mechanisms. 

Third, the regulatory maze. In India especially, getting environmental and radiation clearances takes time. All this adds up. It could be years before a project even begins to see returns. But the strategic importance of these minerals justifies the effort. 

The long-term demand is very strong—particularly from sectors like defence, electric vehicles, renewables, and electronics. That’s why companies like Vedanta and Hindustan Zinc, which already operate at the leading edge of metal extraction, are evaluating forays into this space seriously. 

Q. What kind of technical expertise or technologies are essential for rare-earth processing—and where does India currently stand? 

MISRA: You need multiple layers of capability: hydrometallurgy, high-temperature metallurgy, solvent extraction, magnetic separation, water and waste treatment systems. Then there’s the requirement for customised equipment and advanced process automation. Sensors for temperature, pH, pressure, and real-time chemical composition are essential to ensure process control. 

India has made progress, particularly in monazite processing and solvent extraction through organisations like Indian Rare Earths Limited (IREL). But we’re not yet at global scale or efficiency. Our methods are mostly conventional, and while evolving, they’re not at par with leaders like China or the US. 

That said, we do have potential. With the right R&D investments, global partnerships, and policy incentives, India can bridge the gap—and the private sector has a huge role to play in bringing in capital and operational know-how. 

Q. How realistic is it for India to build an end-to-end rare-earth value chain—from mining to magnets? 

MISRA: It’s ambitious, yes—but entirely doable over time. To begin with, scaling up to high-purity metal production will take five to seven years, assuming we commit the necessary investment in processing infrastructure and skilled labour. 

Going further—to develop magnet manufacturing and complete the loop—will take longer. I’d say we’re looking at a 10–15 year journey if we approach this in phases: first ramping up mining, then refining capacity, and finally magnet and component manufacturing. 

Policy support is key. With incentives, streamlined clearances, and ease of doing business, the private sector can fast-track this process. Vedanta, for instance, is exploring opportunities in rare-earth exploration and refining to meet rising domestic demand. We believe India’s long-term vision should be to build a self-reliant industry that not only meets local needs but also supports global clean-tech and defence value chains. 

Q. Apart from China, are there models India can learn from or collaborate with? 

MISRA: Absolutely. We don’t have to reinvent the wheel. Countries like Australia, the US, and Japan have already demonstrated different ways of building rare-earth ecosystems—often through smart policy and public-private collaboration. 

We have some partnerships already in place. The India–Australia Critical Minerals Partnership, for example, can be deepened to include co-processing and technology transfer. We’ve had a rare-earth tech partnership with Japan since the 2010s, which could be renewed for joint R&D and refining. 

Then there’s the Quad—India, the US, Japan, and Australia—which offers a platform for a shared supply chain and knowledge ecosystem. Strategic collaboration here could be a game-changer. 

Q. Finally, what is the estimated market potential for rare earths in India over the next 10–15 years? 

MISRA: The global rare-earth market is projected to grow to around $20–25 billion by 2030, with a CAGR of about 10–12%. India’s domestic demand could reach $1.5 to 2 billion by the end of the decade—and as high as $5 to 7 billion by 2040, depending on how our EV, electronics, and defence industries scale. 

So yes, the potential is substantial—not just in revenue, but in terms of strategic autonomy. If we do this right, India can secure its own critical mineral supply while emerging as a trusted global supplier.