New Delhi: The government's budget proposal to establish dedicated rare earth corridors in mineral-rich states represents a strategic move to reduce import dependence and strengthen domestic manufacturing capabilities, according to officials. This initiative targets states with significant mineral deposits, including Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, as part of a broader effort to secure India's supply chain for critical materials.
What Are Rare Earth Elements and Why Are They Crucial?
Rare earths comprise a group of 17 metallic elements that are essential for high-performance magnets, advanced electronics, and clean energy technologies. These minerals serve as key inputs for electric vehicles, wind turbines, defense systems, consumer electronics, and semiconductors—sectors that are central to India's ambitious clean energy transition and technological advancement.
Although relatively abundant in the earth's crust, rare earth elements are rarely found in concentrated and economically viable deposits. Their extraction and processing are complex, particularly when associated with radioactive elements. As India scales up renewable energy, electric mobility, and domestic manufacturing, securing a stable rare earth supply has become a strategic priority for the nation.
Exploration and Resource Estimates Across States
The Atomic Minerals Directorate for Exploration and Research (AMD), operating under the Department of Atomic Energy, has conducted extensive exploration across coastal, inland placer sands, and hard rock terrains. Their findings estimate 136 beach sand mineral deposits containing over 13.1 million tonnes of monazite—a key thorium and rare earth-bearing mineral—across states such as Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Maharashtra, and Gujarat.
These deposits account for approximately 7.2 million tonnes of in-situ rare earth oxide resources. In a recent response to a question in the Rajya Sabha, Union Mines Minister G Kishan Reddy highlighted that three hard rock deposits in Rajasthan and Gujarat hold around 1.3 million tonnes of rare earth oxide resources.
Government Control and Classification of Monazite
Monazite, which contains radioactive elements, is classified as a prescribed substance, placing its mining and processing directly under government control. India is among the few countries with the capability to extract and refine rare earths, though its resources are relatively low-grade and largely comprise light rare earth elements.
Policy Initiatives and Manufacturing Capacity
The minister noted that 46 critical mineral blocks, including rare earth elements, have been auctioned in six tranches, along with seven exploration licence blocks. The Union Cabinet has approved the National Critical Mineral Mission to ensure long-term supply security. In November 2025, the government cleared a Rs 7,280-crore scheme to establish 6,000 tonnes per annum of rare earth permanent magnet manufacturing capacity.
Expert Insights on the Proposed Corridors
Rishabh Jain, a fellow at the Council on Energy, Environment and Water, commented that the proposed corridors build on the national critical minerals mission and the magnet manufacturing scheme by linking policy with mineral-rich states. "By anchoring supply chains in these states, we are bridging the gap between upstream mining and downstream manufacturing. Mineral processing remains a key missing link in the critical minerals supply chain," Jain said.
However, he added that the success of these corridors would depend on robust offtake guarantees to secure domestic demand, increased investment in research and development, and technology transfer through partnerships with countries such as Japan, the UK, and the EU.
