India is gearing up to establish a national stockpile of rare earth elements to safeguard its critical mineral supply chain, following China’s decision to curb exports of rare earth magnets—essential components used in electric vehicles, wind turbines, and green technologies. The initiative, known as the National Critical Mineral Stockpile (NCMS), aims to ensure steady availability of these strategic materials across the country.
According to senior government officials, the plan envisions creating a two-month reserve of rare earths, with active participation from private companies. “Our initial goal is to build a short-term stockpile of rare earth elements, which will later expand to other critical minerals,” one official revealed.
Rare earth elements, a group of 17 chemically similar metals, are vital for advanced manufacturing due to their exceptional magnetic and electrical properties. They are indispensable in producing high-performance magnets used in defense, electronics, and renewable energy applications.
The government’s broader strategy focuses on boosting domestic production and reducing dependency on imports. A $7,300 million incentive scheme has already been cleared by an inter-ministerial panel to promote rare earth magnet manufacturing, targeting an annual output of 6,000 tonnes over the next five years. Additionally, $500 million has been allocated under the National Critical Minerals Mission (NCMM) to mitigate supply disruptions and secure resources for local industries.
However, experts warn that India faces a significant challenge — the country still lacks advanced technology to process its own rare earth deposits efficiently. Despite possessing an estimated 7.23 million tonnes of rare earth oxides embedded within 13.15 million tonnes of monazite reserves across states such as Odisha, Tamil Nadu, Kerala, and Gujarat, India relies heavily on imports for refined materials.
Globally, tensions over rare earth supplies continue to escalate. China’s persistent export restrictions have already strained markets, while US President Donald Trump recently threatened an additional 100% tariff on Chinese imports in retaliation.
To strengthen mineral security, India’s Ministry of Mines has auctioned 55 strategic mineral blocks, successfully allocating 34 of them. A sixth round of auctions commenced last month to unlock more deposits, marking a decisive step in India’s journey toward mineral self-reliance and industrial resilience.
