Image Source : Moneycontrol
India is actively considering the establishment of a strategic reserve for rare earth elements (REEs), a move aimed at bolstering national security and economic resilience amid global supply uncertainties. According to a Bloomberg News report, this strategic initiative is being evaluated to ensure steady access to these critical minerals that underpin advanced technologies and emerging sectors.
Key Highlights:
The proposal to create a strategic rare earth reserve comes amid escalating geopolitical competition and supply chain disruptions affecting the availability of REEs, essential components for electronics, defense systems, renewable energy technologies, and electric vehicles.
India, despite possessing notable rare earth deposits, has traditionally relied heavily on imports, particularly from China, which dominates global rare earth production and supply.
Establishing a government-controlled stockpile would enable India to mitigate risks linked to price volatility, trade restrictions, and export controls imposed by supplying countries.
The strategic reserve may be managed alongside efforts to develop domestic mining, processing infrastructure, and technological capabilities to achieve long-term self-reliance.
Key rare earths such as neodymium, dysprosium, and praseodymium, vital for magnets used in wind turbines and electric vehicle motors, are likely to be prioritized within the reserve.
The move aligns with broader government policies aimed at securing critical minerals, fostering manufacturing growth under initiatives like ‘Make in India,’ and supporting clean energy transitions.
Bloomberg notes that India’s Ministry of Mines and Ministry of Steel, along with the Department of Atomic Energy, are coordinating feasibility studies and stakeholder consultations on reserve size, stocking norms, and funding mechanisms.
Analysts view the strategic reserve as a significant step in India’s resource security strategy, reducing vulnerability and promoting resilience amid evolving global trade dynamics.
Market and Strategic Implications:
Creating a strategic rare earth reserve places India among a select group of countries actively ensuring supply chain security for these indispensable minerals, responding to surging global demand driven by digitization and decarbonization efforts.
The initiative is expected to trigger investments in upstream resource development, attract technology partnerships, and encourage private sector participation in the rare earth value chain.
By mitigating dependency on imports, India can enhance geostrategic autonomy, safeguard critical industries, and spur innovation in sectors like electronics manufacturing, defense, and green technologies.
In summary, India’s consideration of a strategic rare earth reserve represents a forward-looking policy aimed at securing critical mineral supplies, supporting economic growth, and advancing technological leadership in a highly competitive global environment.
Sources: Bloomberg News report, Ministry of Mines India, Economic Times, Mint (September 2025)
Advertisement
Advertisement
