India ranks third in rare earth reserves but lags in production due to mining challenges

Economic Times
Economic Times
2h ago
4 views
India holds the third-largest rare earth reserves but produced only 2,900 tonnes in 2024 due to complex mining regulations and limited processing capacity.
India ranks third in rare earth reserves but lags in production due to mining challenges
A What happened
India has the world's third-largest rare earth reserves, with about 6.9 million tonnes of rare earth oxide. However, it produced only 2,900 tonnes in 2024, ranking seventh globally. Challenges include complex mining regulations, limited processing capacity, and lack of value-chain integration, preventing India from gaining global influence in this sector.

Key insights

  • 1

    Reserve Size: India has about 6.9 million tonnes of rare earth oxide reserves, third after China and Brazil.

  • 2

    Low Production: India produced only 2,900 tonnes in 2024, much lower than China and other top producers.

  • 3

    Processing Limitations: India has limited refining capacity and no significant role in global rare earth trade.

Takeaways

To translate its large rare earth reserves into global influence, India must improve mining execution, increase processing capacity, and better integrate the value chain.

Topics

Business & Markets Economy World & Politics Policy & Regulation

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