India is looking to launch its program for building a rare earth stockpile that will ease supply chain issues for the industry. This action comes in response to China’s restrictions on rare earth magnet exports, an essential component for electric vehicles, wind turbines and other environmental technologies, which has affected global supply networks.The government is preparing to introduce the National Critical Mineral Stockpile (NCMS), a specialized initiative to secure the availability of rare earth elements across the nation, as per officials.“We are looking to create a two-month stockpile of rare earth elements under the programme, with a focus on private player participation,” a senior government official told ET on condition of anonymity. “The initial focus is on rare earth elements.”
“The scope will later expand to include other critical minerals,” said the official.
What are rare earths & why are they important for India?
Rare earth elements comprise a collection of 17 elements with comparable chemical characteristics. These substances are particularly valuable in advanced technology applications, specifically in rare earth magnets, owing to their distinctive magnetic and electrical qualities.
Rare earths: Getting future-ready
The initiative aims to support the government’s drive to enhance domestic manufacturing of rare earth magnets. Previously, the financial daily has reported that a crucial inter-ministerial committee had sanctioned a Rs 7,300 crore incentive program to stimulate rare earth magnet production, targeting 6,000 tonnes. within the next five years.The government has allocated Rs 500 crore under the National Critical Minerals Mission to safeguard against supply interruptions and secure mineral availability for domestic consumption. Industry specialists noted that China maintains its restrictions on rare earth magnet exports, despite initial indications of easing. Additionally, US President Donald Trump has threatened to impose a further 100% tariff on Chinese imports in response to China’s recent export restrictions on rare earths.Specialists in the field point out that although building reserves is vital for NCMM’s effectiveness, India faces significant constraints in its technical abilities to process rare earths from its own deposits, as the country presently relies heavily on imports.India possesses an estimated 7.23 million tonnes of rare earth oxide contained within 13.15 million tonnes of monazite, distributed across coastal and inland sites in Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra. The mines ministry has conducted five rounds of auctions, offering 55 critical and strategic mineral blocks, with 34 successfully allocated. The government initiated the sixth round of auctions for more blocks in the previous month.
