The Global Race for Rare Earth Elements: Implications for India and Beyond

The global transition to a green economy is increasingly reliant on rare earth elements (REEs) such as neodymium and dysprosium, essential for technologies ranging from electric vehicles to wind turbines. This reliance has prompted significant geopolitical discussions, particularly among G7 nations, to reduce dependence on China, which currently dominates the REE supply chain. A ministerial meeting held in Washington on January 12, 2025, highlighted these concerns, with Indian Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, emphasizing the need for resilient supply chains to bolster India's manufacturing capabilities.

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India's rare earth resources are primarily sourced from monazite found in coastal and riverine sands across several states, including Odisha, Tamil Nadu, and Kerala. The Indian government, through Indian Rare Earths Limited (IREL), is actively engaged in mining and processing these minerals. However, the extraction process, often involving strip mining, poses significant ecological risks, threatening coastal and riverine ecosystems. In response to these challenges, the Indian government announced a seven-year plan in December 2025 to enhance domestic production of rare earth permanent magnets, with an investment of INR72.8 billion aimed at reducing reliance on imports.

A global race for rare earth minerals underpins the green transition

The Indian government has asserted that it is not dependent on China for rare earth minerals, citing domestic sources of monazite and ongoing efforts to establish a complete domestic value chain. Minister Jitendra Singh stated, “IREL is engaged in the production of rare earth elements from monazite mined in India,” highlighting the establishment of facilities for extraction and recycling of rare earths. Vaishnaw also noted the importance of recycling as a means to harness minerals from waste products, reinforcing the government's commitment to sustainable practices.

India Not Reliant on China for Rare Earth Minerals, Government Tells Rajya Sabha

Despite the push for increased domestic production, experts warn that current mining practices could exacerbate ecological degradation. The demand for REEs is projected to outstrip supply, raising concerns about the sustainability of mining operations. Critics argue that while strategic autonomy is essential, it must be balanced with long-term environmental considerations. Sandeep Pai, co-founder of the Council for Critical Mineral Development in the Global South, advocates for exploring alternatives to traditional mining, such as recovering REEs from waste materials.

A global race for rare earth minerals underpins the green transition

As nations grapple with the complexities of REE supply chains, upcoming initiatives will focus on enhancing recycling technologies and exploring alternative sources of rare earths. Events like the SIM Technical Day scheduled for February 3, 2026, will address global demand, resource availability, and innovative recycling processes. Additionally, international collaborations, particularly between Europe and West Africa, are being explored to secure sustainable supply chains while promoting responsible mining practices.

Rare earths in today's economy: from deposits to recycling

• “Strengthening critical mineral supply chains is vital to enhancing the resilience of India’s manufacturing capabilities and its rapidly growing electronics sector.” — Ashwini Vaishnaw, Union Minister for Electronics and Information Technology

A global race for rare earth minerals underpins the green transition

• “The co-founder of the Council for Critical Mineral Development in the Global South, a collaborative platform, Sandeep Pai, echoes this principle and believes that while the overall share of rare earth mining in the larger mining ecosystem is minimal, we should look at alternatives such as the recovery of these elements from various mine tailings, or waste, acid mine drainage and coal waste like fly ash.” — Sandeep Pai, Co-founder of the Council for Critical Mineral Development in the Global South

A global race for rare earth minerals underpins the green transition

The race for rare earth elements underscores the intricate balance between technological advancement and environmental sustainability, as countries navigate the geopolitical landscape shaped by these critical resources.

A global race for rare earth minerals underpins the green transition