July 23, 2025 — India possesses approximately 7.23 million tonnes of rare earth elements oxide (REO), contained within 13.15 million tonnes of monazite—a key mineral rich in thorium and rare earth elements (REEs). These deposits are distributed across coastal beach sands, teri sands, red sands, and inland alluvium in Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and other regions.
According to data from the Department of Atomic Energy and the Indian Bureau of Mines, these reserves make India one of the largest holders of monazite globally. Monazite is considered a strategic resource due to its concentration of light rare earths such as neodymium, cerium, lanthanum, and praseodymium, which are crucial for advanced technologies including electric vehicles, renewable energy systems, electronics, and defense applications.
At present, the mining and processing of monazite is largely undertaken by Indian Rare Earths Limited (IREL), a public sector enterprise under the Department of Atomic Energy. Due to the presence of radioactive thorium, private sector involvement in rare earth exploration and processing has been restricted, slowing the development of India’s rare earth value chain.
However, with growing global concerns over China’s dominance—which controls over 85% of the world’s rare earth processing capacity—India’s untapped reserves have attracted international attention. Strategic partners including the United States, Japan, and Australia have shown interest in collaborating with India to create a diversified and resilient global REE supply chain.
Industry experts emphasize that while India has significant potential, several challenges remain. These include the lack of advanced separation and refining technologies, stringent regulations related to radioactive material handling, and environmental concerns associated with coastal and inland sand mining. A clear and comprehensive rare earth policy is being called for by stakeholders to streamline approvals, enhance private participation, and encourage domestic value addition.
In 2023, India took a significant step forward by commissioning a pilot plant for rare earth separation in Odisha. This facility is expected to scale up processing capabilities and reduce reliance on imports, especially for high-demand applications like permanent magnets used in wind turbines and EV motors.
India’s rare earth ambitions also align with national programs such as Make in India, Atmanirbhar Bharat, and Energy Transition goals. Strengthening the rare earth ecosystem could help the country reduce its dependency on imports for critical raw materials, while enhancing its geopolitical leverage.
With global demand for REEs projected to more than double by 2030, India’s vast monazite resources offer a strategic and economic opportunity. Experts suggest that timely policy action, technological investments, and global partnerships will be essential to harness this potential effectively.
