The image shows the text "Rare Earth Elements" over a dark background with a planet-like graphic and orbital lines.
The image shows the text "Rare Earth Elements" over a dark background with a planet-like graphic and orbital lines.
The image shows the text "Rare Earth Elements" over a dark background with a planet-like graphic and orbital lines.
The image shows the text "Rare Earth Elements" over a dark background with a planet-like graphic and orbital lines.

Rare Earth Elements: Global Reserves, Strategic Applications & India's Policy Response

Rare Earth Elements: Global Reserves, Strategic Applications & India's Policy Response

Rare Earth Elements: Global Reserves, Strategic Applications & India's Policy Response

Rare Earth Elements: Global Reserves, Strategic Applications & India's Policy Response

Jun 23, 2025
10 mins
mins read

Introduction

Introduction

Introduction

Introduction

Rare earth elements-also called rare earth metals, rare earth minerals, rare metals on Earth, or rare earth materials in India-are a group of 17 metallic elements comprising the 15 lanthanides plus scandium and yttrium, all sharing similar chemical and physical traits. Their names, in order of increasing atomic number, are:
Scandium (Sc), Yttrium (Y), 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), and Lutetium (Lu).
Despite the term “rare earth,” these elements aren’t scarce in Earth's crust-cerium is as abundant as copper-but they occur in dispersed, low-concentration mineral deposits, making economic extraction challenging.
These rare earth elements upsc are indispensable in over 200 products, from consumer electronics, electric vehicles, and renewable-energy systems, to defence hardware, medical devices, and high-temperature superconductors. Even advanced technologies like hydrogen storage and nuclear energy rely on them. The heavy and light sub-categorization (LREE vs HREE) reflects their atomic weights and technological applications-for example, neodymium and dysprosium are key for powerful magnets.
India holds the fifth-largest rare earth elements in India reserves-around 13 million tonnes of monazite sands rich in lanthanum, cerium, neodymium, and praseodymium-but primarily light REEs; heavy rare earths are scarce in extractable form. Production remains under 1 % globally, due to technical, regulatory, and infrastructure limitations. However, recent reforms and strategic collaborations aim to strengthen rare earth elements India capabilities, contributing to national security and technological self-reliance.

Geological Distribution and Sources

Geological Distribution and Sources

Geological Distribution and Sources

Geological Distribution and Sources

Rare earth elements are distributed worldwide but are heavily concentrated in certain regions.

Global reserves: According to the USGS, China dominates both production and reserves:

Country

2023 Production (tonnes)

Estimated Reserves (tonnes)

Global Rank for Reserves

China

~112,000

~44 million

1st

Australia

~18,000

~105.7 million

2nd

India

N/A

~6.9 million

5th

United States

~17,000

~1.4 million

N/A

Global Total

~350,000

N/A

N/A

Table of content

Rare Earth Metals Environmental Challenges and Concerns

Rare Earth Metals Environmental Challenges and Concerns

Rare Earth Metals Environmental Challenges and Concerns

Rare Earth Metals Environmental Challenges and Concerns

1. Generation of Hazardous By-Products from rare earth mineral processing

  • Toxic Dust: Approximately 13 kg of toxic dust is produced per tonne of REE.

  • Waste Gases: Around 10,000 m³ of waste gases are emitted during production.

  • Wastewater: Approximately 75 m³ of wastewater is generated.

  • Radioactive Residue: About 1 tonne of radioactive residue is produced, primarily from monazite ores.

2. Radioactive By-Products from Monazite(Rare earth mineral)

  • Thorium and Uranium: Monazite sands contain thorium (6–12%) and uranium, making them radioactive.

  • Health Risks: Improper handling can lead to soil and water contamination, posing radiation hazards to local communities.

  • Industrial Challenges: Processing monazite requires specialized facilities due to its radioactivity.

3. Land and Ecosystem Disturbance

  • Mining Activities: Large-scale excavation of beaches or hillsides can harm habitats and biodiversity.

  • Regulatory Measures: In India, mining is subject to strict Coastal Regulation Zone (CRZ) and forest clearances, slowing monazite production.

  • Case Study - IREL: Despite a processing capacity of 10,000 tonnes annually, actual production is limited (~4,000 tonnes) due to environmental clearances and policy approvals.

4. Water and Soil Contamination

  • Acidic Wastewater: Rare earth metal mining wastewater can acidify surrounding soil and groundwater, leading to contamination.

  • Heavy Metals: Solid waste from mining can introduce radioactive materials and heavy metals into the environment.

5. Health Impacts on Local Communities

  • Exposure Risks: Inhalation or ingestion of radioactive dust can increase the risk of cancer and other health issues.

  • Case Study - Krasnoufimsk: High incidence of cancer and developmental problems among residents due to exposure to monazite.

6. Regulatory and Policy Challenges

  • Environmental Clearances: Obtaining necessary clearances can delay mining operations.

  • Policy Approvals: Stringent policies aim to balance mineral extraction with environmental protection.

  • Case Study - National Green Tribunal (NGT): Imposed a blanket ban on illegal mining and export of beach sand minerals, highlighting the need for regulatory oversight.

7. Sustainable Practices and Initiatives

  • Recycling and Waste Recovery: India's National Critical Mineral Mission promotes extracting rare earth elements from industrial by-products like fly ash, red mud, and electronic waste.

  • Environmental Impact Assessment (EIA): Mandatory for large-scale mining projects to assess and mitigate environmental impacts.

  • REFER TO THIS BLOG : padhai.ai

Applications and Uses of Rare Earth Elements

Applications and Uses of Rare Earth Elements

Applications and Uses of Rare Earth Elements

Applications and Uses of Rare Earth Elements

Rare earth elements, though used in trace amounts, are indispensable due to their exceptional magnetic, luminescent, and electrochemical properties. They play a pivotal role in high-tech and strategic sectors-making them UPSC-relevant rare earth metals across economy, defence, environment, and technology. 

1. Permanent Magnets (Nd-Dy magnets)
Neodymium‑iron‑boron (NdFeB) magnets (often alloyed with dysprosium) are the strongest permanent magnets-crucial for rare earth elements UPSC themes. Power EV motors, wind turbine generators, computer hard disks, speakers, radar systems, satellite communications, and guidance systems 
Samarium‑cobalt (SmCo) magnets are heat-resistant (curie up to ~700 °C), used in military hardware such as missiles, avionics, and precision instruments.
2. Electronics & Displays
Phosphors containing Europium and Terbium emit vibrant colors in LED lights and screens.
Neodymium-doped YAG lasers power medical and industrial equipment; Erbium boosts fibre-optic amplifiers .
3. Green Technologies & Clean Energy
Rare earth elements (REEs)-like neodymium, dysprosium, praseodymium, lanthanum, and cerium-are critical enablers of clean-energy transitions and rare earth elements UPSC topics:
Wind turbines: NdFeB magnets (neodymium + dysprosium) power direct-drive generators, enhancing efficiency and reducing maintenance 
Electric Vehicles (EVs): Strong NdFeB magnets underlie electric traction motors; lanthanum- and cerium-based alloys boost NiMH batteries; praseodymium also aids motor efficiency.
Solar & Energy Storage: Rare earth metal oxides polish solar panel glass and improve PV efficiency; lanthanum and cerium enhance Li-ion and NiMH battery performance.
Power & Hydrogen: Certain rare earth minerals are used in electrolyzers for green hydrogen production and in generators—key to net-zero goals.
4. Defence & Aerospace
Sm-Co magnets ensure precision in avionics and missile systems; Gadolinium is used in radiation shielding and specialized alloys.
5. Medical & Research
Gadolinium enhances MRI imaging; Promethium serves in portable X-ray units. NdFeB magnets power MRI devices in hospitals.
6. Glass, Ceramics & Water Purification
Rare earth metals are used to polish glass, adjust optical indices, and add coloration. Cerium filters phosphorus from water, improving purification systems.

Rare Earth Elements and Their Role in Modern Technologies

Rare Earth Elements and Their Role in Modern Technologies

Rare Earth Elements and Their Role in Modern Technologies

Rare Earth Elements and Their Role in Modern Technologies

1. Importance of Rare Earth Elements (REEs)

  • Definition: REEs are a group of 17 elements, including lanthanum, cerium, neodymium, praseodymium, dysprosium, and others, essential for various high-tech applications.

  • Global Demand Surge: The demand for REEs is escalating due to their critical role in clean energy technologies, electronics, and defense systems.

2. Key Applications of Rare Earth Elements

  • Electric Vehicles (EVs): Neodymium (Nd) and dysprosium (Dy) are integral in manufacturing high-performance magnets for EV motors and batteries.

  • Wind Energy: Nd, praseodymium (Pr), and Dy are used in permanent magnets for wind turbine generators.

  • Telecommunications: Erbium (Er) is utilized in fiber-optic amplifiers for 5G networks.

  • Consumer Electronics: Indium (In) and yttrium (Y) are essential in LEDs and other electronic components.

  • Defense Technologies: REEs are crucial in advanced systems like hypersonic vehicles and drones.

3. Projected Increase in Rare Earth Elements Demand

  • Neodymium and Dysprosium: Global demand for Nd and Dy is expected to increase 4 to 7 times by 2040, driven by the proliferation of EVs and wind turbines.

  • Dysprosium: Demand for Dy in clean energy applications could rise by up to 2,600% over the next 25 years.

4. India's National Critical Mineral Mission & Rare Earth Elements

  • Objective: Enhance domestic exploration and processing of critical minerals to reduce import dependency and support green technology initiatives.

  • Budget: The mission has an outlay of ₹34,300 crore over seven years, aiming to secure supply chains for critical minerals.

  • Exploration Efforts: In the 2024–25 fiscal year, the Geological Survey of India (GSI) undertook 195 exploration projects focused on critical minerals. 

5. Significant Discoveries in India

  • Balotra, Rajasthan: The Department of Atomic Energy discovered approximately 111,845 tonnes of in-situ rare earth oxide (REO) reserves, marking a significant step towards self-reliance in REE production.

  • Lithium Reserves: India has identified substantial lithium reserves in Jammu and Kashmir, potentially boosting the domestic supply for EV battery manufacturing. 

6. Strategic Importance of Rare Earth Elements

  • Global Supply Chain: China currently dominates the global REE supply, accounting for about 60% of mine production and 90% of processed output.

  • Geopolitical Considerations: Ensuring a stable and diversified supply of REEs is crucial for national security and economic stability.
    G7 SUMMIT BLOG: padhai.ai

Global Context: China's Rare Earth Metals Export Restrictions

Global Context: China's Rare Earth Metals Export Restrictions

Global Context: China's Rare Earth Metals Export Restrictions

Global Context: China's Rare Earth Metals Export Restrictions

  • April 2025: China imposed stringent export controls on seven key rare earth metals, including neodymium and dysprosium, vital for electric vehicle (EV) motors and wind turbines.

  • Impact on India: China's dominance in global rare earth metal processing (over 90%) has led to supply chain disruptions, particularly affecting India's automotive and electronics sectors.

India's Response: Strategic Export Adjustments

India's Response: Strategic Export Adjustments

India's Response: Strategic Export Adjustments

India's Response: Strategic Export Adjustments

1. Suspension of Export Agreements

  • IREL-Toyota Tsusho Deal: India has directed Indian Rare Earths Ltd (IREL) to suspend a 13-year-old export agreement with Toyota Tsusho's Indian subsidiary. In 2024, this partnership accounted for approximately one-third of IREL's total rare earth metal output. 

  • Objective: To prioritize domestic supply of critical rare earths like neodymium for EV and defense sectors. 

2. Policy Reforms and Incentives

  • National Critical Mineral Mission: Launched in April 2025, this initiative aims to reduce dependence on imports and bolster domestic processing capabilities.

  • Incentive Scheme: The Indian government is preparing a ₹5,000 crore scheme to promote domestic production of rare earth magnets, offering fiscal incentives to local manufacturers.

3. Diversification of Supply Sources

  • Exploration Initiatives: India is accelerating exploration of its own rare earth metal reserves, particularly in regions like Rajasthan and Odisha, to reduce reliance on imports.

  • International Partnerships: Discussions are underway to establish long-term stockpiles and secure supply agreements with countries possessing significant rare earth metal reserves.

India’s Rare Earth Mineral sources: In India, rare earth minerals occur mainly in coastal and beach sands (heavy mineral deposits) and some hard-rock deposits. 

Location

Type of Deposit

Estimated Reserves (tonnes)

Notes

India's Coastal Regions

Coastal and beach sands (heavy mineral deposits)

~13.07 million (monazite)

Found in Kerala, Tamil Nadu, Odisha, Andhra Pradesh, Maharashtra, Gujarat. Monazite contains ~55-60% total rare earth oxide.

Ambadungar, Gujarat

Rare-earth oxides (monazite)

~7.37 lakh (737,000)

Contains significant rare-earth oxides.

Barmer, Rajasthan

Rare-earth oxides (monazite)

Verified reserves

Part of the coastal deposits.

Bhatinda, Gujarat

Rare-earth oxides (monazite)

Verified reserves

Part of the coastal deposits.

Jharkhand & Chhattisgarh

Inland sands (xenotime, heavy Rare Earth Elements like Dy and Yb)

N/A

Xenotime deposits contain heavy Rare Earth Elements.

Balotra, Rajasthan

Rare-earth oxides (monazite)

~111,845

Recently discovered by the Geological Survey and Atomic Energy Dept.

Rajasthan (Pyrochlore)

Minerals (pyrochlore)

Contains light REEs (La, Ce)

Pyrochlore deposits in Rajasthan contain light Rare Earth Elements.

Global Collaborative Efforts on Rare Earth Minerals

Global Collaborative Efforts on Rare Earth Minerals

Global Collaborative Efforts on Rare Earth Minerals

Global Collaborative Efforts on Rare Earth Minerals

1. G7 Initiatives

  • Critical Minerals Action Plan: In June 2025, G7 leaders launched an action plan to secure critical mineral supplies, emphasizing the importance of transparent and responsible extraction, processing, and trade of REEs. 

  • Strategic Objectives: The plan aims to reduce reliance on any single country for critical minerals, promote sustainable practices, and enhance supply chain resilience.

2. Minerals Security Partnership (MSP)

  • Formation: The MSP is a transnational association comprising 14 countries and the EU, including India, committed to securing a stable supply of critical minerals.

  • Goals: The partnership focuses on ensuring that critical minerals are produced, processed, and recycled in a manner that supports the economic development of member countries.

Strategic Implications for India

Strategic Implications for India

Strategic Implications for India

Strategic Implications for India

  • Resource Sovereignty: India's efforts to enhance domestic rare earth metal production align with its broader goal of achieving resource sovereignty and reducing dependence on external sources.

  • Geopolitical Considerations: Control over rare earth metal resources has implications for India's foreign policy, particularly in relation to neighboring countries and global trade partners.

  • Economic Security: Securing a stable supply of rare earth is crucial for India's economic security, supporting industries ranging from defense to renewable energy.

Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

Q1: What are rare earth elements (REEs)?
Rare Earth Elements are 17 elements, including 15 lanthanides plus scandium and yttrium. Despite their name, many rare earth elements are relatively abundant in the Earth's crust but are rarely found in concentrated forms suitable for mining.
Q2: Are rare earth elements actually rare?
No, REEs are not rare in terms of abundance. For example, cerium is more abundant than copper. Their scarcity lies in the difficulty of extracting them from ores, often due to their dispersion and association with radioactive elements. 
Q3: What are the main applications of rare earth elements?
Rare Earth Elements are crucial in various technologies:

  • Magnets: Neodymium and dysprosium in electric vehicle motors and wind turbines.

  • Phosphors: Europium and terbium in LEDs and screens.

  • Catalysts: Cerium in catalytic converters; lanthanum in hybrid batteries.

  • Defense: Samarium and gadolinium in precision-guided systems.

  • Medical: Gadolinium in MRI contrast agents.

Q4: Where are India's rare earth minerals found?
India's primary REE source is monazite in coastal sands, abundant in Kerala, Tamil Nadu, Andhra Pradesh, Odisha, Maharashtra, and Gujarat. Notably, the Balotra deposit in Rajasthan contains approximately 111,845 tonnes of rare-earth oxides.
Q5: Why did India halt rare earth metal exports in 2025?
In mid-2025, India directed Indian Rare Earths Limited (IREL) to suspend exports, primarily to Japan, to prioritize domestic supply. This decision aimed to bolster national security and support domestic industries amid global supply concerns.

Conclusion

Conclusion

Conclusion

Conclusion

Rare earth elements (or rare earth metals) are vital, though often overlooked, components of the modern economy. They are the backbone of cutting-edge electronics, defense systems, and green-energy technologies. India possesses significant reserves of rare earth minerals – especially in coastal monazite sands– and is actively working to harness this potential. The government’s National Critical Minerals Mission explicitly highlights rare earths as essential for meeting climate and technology goals At the same time, the challenges are real: extraction is expensive and environmentally sensitive, and international markets are dominated by a few players (notably China).
For UPSC aspirants, mastering this topic means understanding the geology, technology, and geopolitics of rare earths. Key points include India’s status as the 5th-largest REE reserve holder, the strategic uses of elements like Nd, Pr, Dy and Tb, and how policies (like export controls and incentive schemes) are shaping a resilient supply chain. In summary, rare earth elements exemplify the intersection of earth science and policy: knowing their distribution, uses, and international issues is essential for a well-rounded understanding of India’s resource security.

Internal Linking Suggestions

  1. How to Begin Your UPSC Preparation : The Ultimate Guide For Beginners

  2. Best Books for UPSC IAS Prelims and Mains Exam Preparation

  3. UPSC Previous Year Question Papers with Answers PDF - Prelims & Mains (2014-2024)

  4. Detailed analysis of UPSC Prelims Answer key 2025

  5. Important Polity topics for Prelims 

  6. Constitution of India for upsc preparation 

  7. Top UPSC Online Apps That Toppers Swear By in 2025

  8. upsc optional subject list and syllabus-for-cse-exam-2025-complete-guide

  9. How to Prepare Current Affairs for UPSC Exam: A Comprehensive Guide

  10. 51st G7 Summit 2025 – Countries, Key Issues, India’s Role & UPSC

External Linking Suggestions

Suggested blogs