India To Launch National Stockpile For Rare Earth Minerals
COAL & MINING

India To Launch National Stockpile For Rare Earth Minerals

The Indian government is preparing to launch the National Critical Mineral Stockpile (NCMS), a strategic initiative designed to secure the nation’s access to rare earth elements essential for clean energy, defence, and high-technology manufacturing, according to a report by The Economic Times.

The move follows China’s recent export restrictions on rare earth magnets — critical components used in electric vehicles (EVs), wind turbines, and advanced electronics — which have disrupted global supply chains and highlighted India’s import dependence.

A senior government official told ET that the NCMS would create a two-month reserve of critical rare earth materials, with active participation from private companies. “The initial focus is on rare earth elements,” the official said, adding that the programme’s scope will later expand to include other strategic minerals vital to India’s energy transition and industrial growth.

Strengthening Supply Chain Security

Rare earth elements, a group of 17 chemically similar metals, are prized for their unique magnetic, luminescent, and electrical properties, making them indispensable in next-generation technologies.

The NCMS will complement India’s ongoing efforts to boost domestic production of rare earth magnets. An inter-ministerial panel has already cleared a Rs 73 billion incentive scheme to produce up to 6,000 tonnes of rare earth magnets over the next five years.

Additionally, under the National Critical Minerals Mission (NCMM), the government has earmarked Rs 5 billion to build safeguards against supply shocks and ensure consistent access to essential minerals for domestic industries.

Domestic Potential And Challenges

Experts quoted by ET noted that while stockpiling represents a crucial step towards mineral self-reliance, India still faces significant challenges in rare earth processing and refining, given its limited technological capacity. Most of India’s demand is currently met through imports.

India is estimated to hold 7.23 million tonnes of rare earth oxide within 13.15 million tonnes of monazite deposits, primarily located along the coasts of Andhra Pradesh, Odisha, Tamil Nadu, Kerala, and parts of West Bengal, Jharkhand, Gujarat, and Maharashtra.

To accelerate exploration and mining, the Ministry of Mines has conducted five rounds of auctions, placing 55 critical and strategic mineral blocks under the hammer, of which 34 have been awarded. A sixth tranche of auctions was launched last month to further expand exploration and production.

The NCMS forms part of India’s broader effort to reduce import dependence, strengthen mineral security, and build resilient supply chains, reinforcing its goal of becoming a global leader in clean energy manufacturing and advanced technology production.

The Indian government is preparing to launch the National Critical Mineral Stockpile (NCMS), a strategic initiative designed to secure the nation’s access to rare earth elements essential for clean energy, defence, and high-technology manufacturing, according to a report by The Economic Times. The move follows China’s recent export restrictions on rare earth magnets — critical components used in electric vehicles (EVs), wind turbines, and advanced electronics — which have disrupted global supply chains and highlighted India’s import dependence. A senior government official told ET that the NCMS would create a two-month reserve of critical rare earth materials, with active participation from private companies. “The initial focus is on rare earth elements,” the official said, adding that the programme’s scope will later expand to include other strategic minerals vital to India’s energy transition and industrial growth. Strengthening Supply Chain Security Rare earth elements, a group of 17 chemically similar metals, are prized for their unique magnetic, luminescent, and electrical properties, making them indispensable in next-generation technologies. The NCMS will complement India’s ongoing efforts to boost domestic production of rare earth magnets. An inter-ministerial panel has already cleared a Rs 73 billion incentive scheme to produce up to 6,000 tonnes of rare earth magnets over the next five years. Additionally, under the National Critical Minerals Mission (NCMM), the government has earmarked Rs 5 billion to build safeguards against supply shocks and ensure consistent access to essential minerals for domestic industries. Domestic Potential And Challenges Experts quoted by ET noted that while stockpiling represents a crucial step towards mineral self-reliance, India still faces significant challenges in rare earth processing and refining, given its limited technological capacity. Most of India’s demand is currently met through imports. India is estimated to hold 7.23 million tonnes of rare earth oxide within 13.15 million tonnes of monazite deposits, primarily located along the coasts of Andhra Pradesh, Odisha, Tamil Nadu, Kerala, and parts of West Bengal, Jharkhand, Gujarat, and Maharashtra. To accelerate exploration and mining, the Ministry of Mines has conducted five rounds of auctions, placing 55 critical and strategic mineral blocks under the hammer, of which 34 have been awarded. A sixth tranche of auctions was launched last month to further expand exploration and production. The NCMS forms part of India’s broader effort to reduce import dependence, strengthen mineral security, and build resilient supply chains, reinforcing its goal of becoming a global leader in clean energy manufacturing and advanced technology production.

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