China’s monopoly to end? Massive deposits of ‘Rare Earth Minerals’ found in this state in India, place is…, mining auction worth…
The demand for rare earth minerals is increasing globally. These minerals are used for several purposes, including usage in smartphones, electric vehicles, defense equipment, and renewable devices. At present, China holds a 90% monopoly on global rare earth supplies. However, India is gearing up to challenge this monopoly following the discovery of significant rare earth mineral deposits in Rajasthan’s Balotra district.
What are the 17 Rare Earth Minerals?
Rare earth minerals consist of 17 elements, such as lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and scandium (Sc) and yttrium (Y). These elements play an important role in powering a wide range of modern technologies used today.
Which Indian state has emerged as a new hotspot for rare earth minerals?
The Geological Survey of India (GSI) and the Atomic Minerals Directorate (AMD) have found significant reserves of rare earth minerals (REM) in Bhati Kheda, a village in the Siyana tehsil of Balotra district of Rajasthan. This development could enhance India’s self-reliance and further its place in the global supply chain.
According to the media reports, several large-scale surveys have been conducted in many parts of Balotra and Jalore districts, while exploration in Bhati Kheda is almost near completion. Mining auctions valued at approximately Rs 10 crore are expected to take place shortly, attracting interest from both private and public entities.
According to the media reports, environmental clearance for Bhati Kheda is likely to proceed in a straightforward process as the area is not within a wildlife sanctuary or environmentally sensitive area and there are significant concentrations of bastnäsite, britholite, and xenotime – major rare earth mineral deposits.
What are the uses of Rare Earth Minerals?
China’s overwhelming control of global rare earth processing – commanding over 90 per cent of the world’s magnet production capacity–has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy systems. As per the news agency ANI report(June 2025), Rare earth magnets are integral to permanent magnet synchronous motors (PMSMs) used in EVs for their high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion. Rare earth metals are important in the manufacturing of permanent magnets, which find applications in smartphones, computers, electric cars, lasers, and missile guidance systems.
Where does India stand in the global ranking of rare earth mineral reserves?
India has the third-largest rare earth reserves in the world, estimated at 6.9 million tonnes. Nevertheless, India’s rare earth production is currently only about 1% (about 9,000 tonnes per year) of total production in the world due to outdated processing technology, limited technological capabilities, and limited mining infrastructure.
What is the National Critical Minerals Mission (NCMM)?
In response to this issue, the central government announced the National Critical Minerals Mission (NCMM) in 2025. The purpose of NCMM is to facilitate a rapid acceleration in the exploration, mining, and processing of critical minerals across the country. As part of this initiative, the Geological Survey of India (GSI) has been assigned 1,200 exploration projects between 2024–25 and 2030–31, with Bhati Kheda identified as a key strategic site.
According to the Press Information Bureau(April 2025), the Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector. Under this mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects from 2024-25 to 2030-31.
A committee formed by the Ministry of Mines in November 2022 identified 30 critical minerals, with 24 included in Part D of Schedule I of Mines and Minerals Development and Regulation Act, 1957 (MMDR Act, 1957). The inclusion of 24 critical minerals in Part D of the First Schedule of the Mines and Minerals (Development and Regulation) Act (MMDR Act) means that the Central Government now has the exclusive authority to auction mining leases and composite licenses for these specific minerals.
It also recommended setting up a Centre of Excellence on Critical Minerals (CECM) to regularly update the mineral list and guide strategy.
Critical minerals are essential for clean energy technologies like solar panels, wind turbines, EVs, and energy storage systems. To secure these resources, India launched the NCMM to ensure their long-term availability and processing.
The sole purpose of NCMM is to
- To secure India’s critical mineral supply chain by ensuring mineral availability from domestic and foreign sources.
- Strengthening the value chains by enhancing technological, regulatory, and financial ecosystems to foster innovation, skill development, and global competitiveness in mineral exploration, mining, beneficiation, processing, and recycling.
In addition to the mission, the government announced a Production Linked Incentive (PLI) scheme of Rs 1000 crore to boost domestic production of rare earth magnets. With solid policy support and recent discoveries, India is now ready to decrease its dependence on China and emerge as a top player in the global rare earth space.
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