China has long dominated the rare earth metals supply chain, controlling over 90% of global processing. With Beijing now tightening export licenses, Indian industries that rely on these critical minerals especially electric vehicle (EV) manufacturers are feeling the heat. Companies like Maruti, TVS, and Bajaj are seeing delays and rising costs due to disrupted supply of elements like neodymium and dysprosium, which are essential for EV motors and defence electronics.<\/p>\n\n\n\n
India, meanwhile, has a major hidden strength. It holds the world\u2019s third-largest reserves of rare earth elements, but most of it remains untapped or only partially processed. Indian Rare Earths Limited (IREL), a public sector unit, controls most of this raw material. Until recently, IREL exported a large chunk of it to Japan. That\u2019s changing now. To reduce dependency on China and secure domestic needs, India is halting exports and working on a comprehensive strategy to build up its own processing and manufacturing capabilities.<\/p>\n\n\n\n
The government has also launched the National Critical Mineral Mission and approved a \u20b91,345 crore incentive scheme to develop rare earth magnets within the country. This push is expected to attract companies like Mahindra and Uno Minda, and strengthen partnerships with countries like Australia. The aim is to move beyond just mining and create a full ecosystem from extraction to magnet manufacturing that powers EVs, electronics, and national security infrastructure. India\u2019s current limitations in refining and magnet production will take time to overcome. But with policy support and growing global demand, it now has the opportunity to become a serious player in the rare earth sector. <\/p>\n\n\n\n
To sum up, by investing in this strategic area, India can insulate its supply chains, boost manufacturing, and turn a global crisis into long-term advantage.<\/p>\n\n\n\n\n
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