Rajasthan’s Rare Earth Potential Faces Challenges

Rajasthan’s newly discovered rare earth element (REE) deposits in Jalore and Barmer spark hope for India’s self-reliance, per a July 2025 Outlook Business report. However, limited processing capabilities and regulatory hurdles delay the path to a domestic supply chain.

India, with 6.9 million tonnes of REE reserves, ranks third globally, per India Today. Rajasthan’s deposits, rich in neodymium and praseodymium, support EVs, wind turbines, and defense systems. China’s 80% control of global REE supply, tightened by 2025 export curbs, disrupts India’s 53,748-tonne magnet imports, per Outlook Business. The National Critical Mineral Mission, with Rs 5,000 crore, aims to produce 5,000 tonnes by 2030, but refining constraints limit progress.

Indian Rare Earths (IREL) targets 5% of global REE production, leveraging 35% of global beach sand deposits. A pilot plant in Gujarat produces 100 tonnes annually at 85% efficiency, but 80% import reliance for equipment raises costs by 10%. The 2025 Budget’s $1 billion for critical minerals funds R&D, yet 20% of projects face delays due to environmental regulations. Private firms like Vedanta are bidding for REE blocks, but the Department of Atomic Energy’s control over radioactive minerals limits innovation.

Environmental risks, including 5% habitat disruption, require $50 million in mitigation. Global benchmarks, like Australia’s 10% REE share, use AI-based refining for 20% cost savings. Posts on X highlight Vedanta’s $100 million investment, reflecting optimism. Scaling needs $500 million and 10,000 workers by 2030. The U.S.-India MoU fosters technology transfer, targeting 500 tonnes by 2027.

Conclusion

Rajasthan’s REE deposits offer strategic potential, but building a mine-to-magnet chain requires overcoming refining and regulatory challenges to reduce China’s dominance.

Source: Outlook Business