India rare earth production continues to lag far behind its potential, even though the country holds one of the largest reserves in the world. A recent report has once again brought attention to the wide gap between what India has underground and what it actually produces. This mismatch points to long-standing policy delays, complex rules, and slow development of mining and processing systems.

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Rare earth elements are essential for modern life. They are used in smartphones, electric vehicles, wind turbines, defence equipment, and many advanced technologies. As global demand rises, India’s limited output has become a growing concern for both industry and policymakers.

India’s Strong Position in Global Rare Earth Reserves

India rare earth production could be much higher because the country holds around 6.9 million tonnes of rare earth oxide reserves. This places India third globally, behind only China and Brazil. China leads with about 44 million tonnes, while Brazil has close to 21 million tonnes.

Other countries with notable reserves include Australia, Russia, Vietnam, and the United States. With nearly 6–7 percent of the world’s known reserves, India has enough resources to play a major role in the global supply chain. However, its presence in actual production remains very small.

Production Numbers Tell a Different Story

Despite its large reserves, India rare earth production remains modest. In 2024, India produced only around 2,900 tonnes, placing it seventh worldwide. This figure is tiny when compared to China, which produced about 270,000 tonnes in the same year.

The United States followed with roughly 45,000 tonnes, while Myanmar produced about 31,000 tonnes. Australia, Thailand, and Nigeria each reported production of around 13,000 tonnes. India’s share adds up to less than one percent of global output, highlighting how underused its resources remain.

Why Mining Rare Earths Is Difficult in India

One major reason for low India rare earth production is the nature of its deposits. Most reserves are found in coastal sands rich in monazite. These sands also contain thorium, a radioactive material. Because of this, mining and processing come under strict rules and close monitoring.

For many years, rare earth mining in India was tightly controlled by the government. Indian Rare Earths Limited (IREL), a public sector company, handled most activities. Rare earths were often treated as secondary products rather than valuable strategic resources. This approach slowed innovation, private investment, and large-scale development.

Processing Is the Biggest Weak Link

Mining is only one part of the story. The bigger challenge for India rare earth production lies in processing and refining. Turning raw minerals into usable materials requires advanced technology, heavy investment, and long-term planning.

China dominates this stage almost entirely, especially for heavy rare earth elements. It controls nearly the full value chain, from mining to final processing. India, on the other hand, has very limited refining capacity and depends on small initiatives. One example is a joint venture with Japan in Visakhapatnam, but such efforts remain small in scale.

Strategic Importance for the Future

The report makes it clear that India’s problem is not a lack of resources. Instead, the issue is slow execution, weak coordination across the value chain, and limited processing infrastructure. As global supply chains look to reduce dependence on China, India has an opportunity to step up.

Strengthening India rare earth production will require clearer policies, faster approvals, private sector participation, and strong investment in processing technology. If these gaps are addressed, India could turn its natural advantage into a strategic asset for clean energy, electronics, and national security.