Rare Earths: India's Strategic Minerals Play to Boost Self-Reliance

Dateline: NEW DELHI: India is rapidly advancing its strategy to secure critical rare earth elements (REEs), a move aimed at reducing its heavy reliance on China and strengthening its strategic autonomy in key sectors like electronics, electric vehicles (EVs), and defence. The push comes as global powers recognise REEs not merely as commodities, but as geopolitical levers, a reality starkly underscored by China's past actions.

Background: Why Rare Earths Are Critical

Rare earth elements, a group of 17 metallic elements, are indispensable components in modern technology. From smartphones and laptops to wind turbines, EV batteries, and advanced defence systems, REEs are the backbone of the digital and green economies.

China currently holds a near monopoly, controlling an estimated 60-70% of global REE mining and an overwhelming 90% of processing capabilities. This dominance grants Beijing significant leverage, as demonstrated in 2010 when it restricted REE exports to Japan during a territorial dispute. Chinese officials famously declared at the time, "The Arabs have oil; we have rare earths," highlighting the strategic value they place on these minerals. Further compounding concerns for India, China has reportedly expanded its exploitation of REE-rich areas in neighbouring Myanmar, right on India's doorstep.

India's Proactive Stance

Recognising the growing technological and defence needs, coupled with the rapid expansion of its EV and electronics industries, India can no longer afford to be passive. The Government of India (GoI) has initiated a multi-pronged approach to bolster its domestic rare earth capabilities:

* Intensive Surveying: The Geological Survey of India (GSI) and Atomic Minerals Directorate for Exploration and Research (AMD) are actively identifying and surveying domestic REE deposits.

* Public-Private Partnerships: The government is fostering joint ventures between Public Sector Undertakings (PSUs) like Indian Rare Earths Limited (IREL) and private sector players.

* Investment Opportunities: Exploration and downstream processing are being opened up to Indian corporates and Foreign Direct Investment (FDI) to attract necessary capital and expertise.

Corporate Giants Join the Race

Several prominent Indian conglomerates have expressed keen interest in the rare earth sector, signaling a significant shift in domestic industrial focus:

* Vedanta: With a strong background in mining and existing operations in Odisha and Chhattisgarh, Vedanta is poised to enter both REE mining and value-added processing.

* Jindal Group: Leveraging its experience in steel and mining, the Jindal Group is likely to invest in potential REE fields in Odisha and Rajasthan.

* Mahindra: As a pioneer in India's EV market, Mahindra's interest lies in securing a stable supply of REEs for its battery and motor manufacturing.

* Reliance Industries: Given its substantial investments in batteries, green energy, and semiconductors, Reliance is expected to focus on refining and securing long-term supply contracts for REEs.

Key Rare Earth Deposits Across India

India possesses significant REE reserves across various states and regions:

* Coastal Beach Sands: Andhra Pradesh (Vishakhapatnam, Srikakulam), Odisha (Chhatrapur–Ganjam), Tamil Nadu (Manavalakurichi, Tuticorin – already being mined), and Kerala (Kollam & Alappuzha) are rich in monazite sands, a primary source of REEs.

* Hard Rock Deposits: Rajasthan (Siwana & alkaline complexes), Jharkhand (Singhbhum & Ranchi), Chhattisgarh & Madhya Pradesh (Bastar & Satna districts) hold promising hard rock REE deposits.

* Northeast India's Strategic Importance: Assam's Karbi Anglong, Goalpara, and Nagaon districts have confirmed deposits of REEs, uranium, platinum, iron, and vanadium. Meghalaya and Arunachal Pradesh also show promising granitic and pegmatite REE sources. The Northeast, being geopolitically sensitive and bordering Myanmar and China, makes these deposits strategically vital but also vulnerable.

Opportunities for India

A successful rare earth strategy presents multi-faceted benefits for India:

* Reduced Dependency: Significant reduction in reliance on China, bolstering strategic autonomy.

* Industrial Growth: Development of nascent domestic industries, particularly EVs, semiconductors, and defence manufacturing.

* Job Creation: Generation of employment opportunities across the mining, processing, and technology sectors.

* Geopolitical Leverage: Potential to use REEs as a geopolitical tool, akin to how oil and gas influence global dynamics.

* Global Collaboration: Attraction of international investment and technological partnerships.

Challenges on the Road Ahead

Despite the ambitious vision, India faces considerable hurdles in its rare earth endeavour:

* Land Acquisition: Fragmented land ownership, complex litigation, and opposition from local communities make land acquisition for mining projects difficult.

* Infrastructure Deficit: Many potential REE fields are in remote areas, lacking essential infrastructure such as roads, reliable power, water, and port connectivity, leading to increased costs and delays.

* Local and Tribal Resistance: Mining activities often impact ecologically fragile and tribal regions (e.g., parts of Assam, Odisha), sparking protests and local resistance.

* Security Concerns: In insurgency-affected areas like Karbi Anglong and other parts of the Northeast, projects could face sabotage from armed groups, potentially influenced by local grievances or even foreign actors.

* Political Obstacles & Corruption: The potential for "blue-eyed gatekeepers" and local political interests to prioritise personal gains over national interest could lead to inefficiency and corruption.

* Technological Gaps: India significantly lags in large-scale REE refining and separation facilities, an area where China holds a substantial technological lead. Developing these capabilities will require considerable investment and expertise.

* Environmental Impact: REE mining and processing can generate radioactive waste and heavy-metal pollution, posing significant risks of ecological damage and public health crises if not managed with stringent environmental safeguards.

India's rare earth push is a critical step towards securing its economic and strategic future, but overcoming these entrenched challenges will be crucial for its success.