Discuss the significance of Rare Earth Elements (REEs) for India and suggest measures to strengthen India’s self-reliance in this critical sector. (15M, 250 words)

Rare Earth Elements (REEs) are a group of 17 metals (15 Lanthanides + Scandium + Yttrium), critical for green energy, defence, electronics, and space technologies. Despite their misleading name, they are moderately abundant but difficult to extract economically.

Significance of REEs for India:

• Strategic Technologies:
  • Defence: Precision-guided missiles, radars, sonar, jet engines.
  • Space: Satellite communication systems.
  • For example, Neodymium & Samarium magnets are vital in missile guidance systems.
• Clean Energy & EV Transition:
  • Wind turbines, solar panels, and EV batteries rely on REEs. For example, Neodymium-Iron-Boron (Nd-Fe-B) magnets are essential for EV motors. It also supports India’s Net Zero 2070 goals.
• Electronics & Communication:
  • They are used across Smartphones, fibre optics, displays, and semiconductors. For example, Lanthanum forms 50% of digital camera lenses.
• Medical Applications:
  • MRI machines, PET scans, cancer treatment.FErbium used in fibre-optic laser surgery.
• Economic Leverage:
  • REEs align with Atmanirbhar Bharat and Make in India goals reduce import bills in electronics & EV sectors.

Challenges for India:

• Extraction & Processing Constraints:
  • REEs are dispersed in low concentrations and cause environmental damage to the extent that 1 ton of REE may produce 2,000 tons of toxic waste.
• Monopoly of China:
  • China controls 90% of refining capacity and 2/3rd of mining output. Further frequent export restrictions cause supply chain issues.
• Domestic Bottlenecks:
  • REEs are classified as atomic minerals which restricts mining to PSUs like IREL.
  • India also lacks industrial-scale refining for Heavy REEs.
  • For example, 2016 ban on beach sand mining reduced supply access.
• Economic Viability:
  • High processing costs and radioactive by-products like thorium and uranium complicate the problem.
• Underutilised potential: India holds 6% of global reserves, ranking fifth globally. Yet, India is import-dependent, especially for heavy REEs, making it vulnerable to supply chain shocks.

Steps Taken by India:

• Indian Rare Earths Limited (IREL): Processing monazite sands in Odisha, Kerala, Tamil Nadu.
• REE & Titanium Theme Park by IREL and BARC for technology transfer.
• Explorations New carbonatite deposits in Gujarat discovered.
• International partnerships: India–U.S. Critical Minerals Partnership, QUAD’s supply chain initiatives.

Reforms needed:

1. Liberalisation of REE Sector: Delist REEs from “atomic minerals” to allow private sector entry with PSU oversight.
2. Dedicated REE Authority: Establish a Department of Rare Earths to coordinate exploration, refining, and R&D.
3. Strengthen Domestic Value Chain: Move beyond raw extraction and develop alloy & permanent magnet industries. For example, Japan is investing in Lynas Corp (Australia) to bypass Chinese dominance.
4. Strategic Reserves: Build REE stockpiles, similar to strategic petroleum reserves.
5. Mineral Diplomacy: Deepen cooperation with Australia, Vietnam, U.S. for supply diversification.
6. Sustainable Mining: Adopt eco-friendly extraction technologies and incentivise R&D to minimise radioactive by-products.

Conclusion:

REEs are the “vitamins of modern industry”.  By liberalising the sector, investing in refining, and leveraging global partnerships, India can transform its REE potential into a pillar of Atmanirbhar Bharat and national security.

‘+ 1’ Value Addition:

• India has 13.07 million tonnes of REEs, mainly light REEs (monazite sands).
• China’s dominance can be seen in its holding 37% reserves and 90% refining.
• Global Example: EU’s Critical Raw Materials Act (2023) targets diversification of REE imports.
• India’s Import Dependence: India Imported 2,270 tonnes in FY 2023–24, mainly from China & Japan.

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