Enough Of Chinese Tantrums, India To Manufacture Rare Earth Minerals At Home

India is moving forward with plans to process rare earth magnets and other critical minerals within the country. The aim is to strengthen its role in the fast-growing electronics and semiconductor sectors.

These minerals — needed for products such as smartphones, electric vehicles, and wind turbines — are in short supply globally and are often controlled by only a few countries. Speaking in Parliament, Union Minister Ashwini Vaishnaw said the government is following two main strategies to secure a reliable supply.

What the government is doing

The first strategy is to work with mineral-rich countries to mine and process resources abroad. This will be done under the National Critical Minerals Mission (NCMM), which the cabinet approved in January 2025. The mission also aims to set up long-term supply deals to protect India from price swings and trade disruptions.

The second strategy is to tap into India’s own mineral reserves, especially those found in coastal sands in Odisha, Andhra Pradesh, Tamil Nadu, Kerala, and Gujarat. These sands contain several valuable minerals used in modern manufacturing.

The government’s objective

The larger goal is to develop the entire supply chain inside India — from refining minerals to making the chemicals, gases, and specialised machinery needed for chip manufacturing. Officials say this would boost domestic production and attract more foreign investment into India’s tech sector.

Also Read: India’s Push for Rare Earth Magnet Production to Counter China’s Supply Curbs: G Kishan Reddy | Republic World

Why it matters

This push is important because it can reduce India’s dependence on unpredictable global markets, lower its reliance on China-led supply chains, and create new skilled jobs while strengthening the country’s industrial capacity.

Current challenges

Building rare earth processing plants will require major investment, advanced technology, and a highly trained workforce. Mining in coastal areas will also need strict environmental safeguards to protect local ecosystems.

The big picture

Experts believe that if these plans work, India could become a major global hub for critical minerals and high-tech manufacturing. This would reduce its import dependence while delivering both economic and strategic benefits in a world where these resources are increasingly important, as per industry experts.