India Ranks Third in Global Rare Earth Reserves Amidst Production and Processing Challenges

Key facts

• India holds about 6.9 million tonnes of rare earth oxide (REO) reserves, placing it behind only China and Brazil.
• In 2024, India produced only 2,900 tonnes of rare earths, ranking seventh globally.
• Most of India's reserves are found in monazite-rich coastal sands, which also contain thorium, a radioactive element.
• Production was largely restricted and handled mainly by Indian Rare Earths Limited (IREL), where rare earth elements were treated as by-products rather than strategic resources.
• China controls about 90 per cent of global rare earth refining capacity and almost the entire processing of heavy rare earth elements.
• India holds nearly 6-7 per cent of global rare earth reserves, yet contributes less than 1 per cent of global production.
• The report highlighted that processing and refining is the biggest challenge, as India has very limited processing and refining capacity.