Rare Earth Elements (REEs)
- Definition: Group of 17 chemically similar metallic elements (15 lanthanides + scandium + yttrium).
- Categories:
- Light Rare Earths (LREEs): Lanthanum, cerium, praseodymium, neodymium, samarium, europium.
- Heavy Rare Earths (HREEs): Gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium, yttrium.
- Exclusion: Promethium (radioactive, no mineable reserves).
- Uses:
- Clean energy: EV batteries, wind turbine magnets (NdFeB).
- High-tech devices: Smartphones, hard drives, fibre optics, ceramics, phosphors.
- Defence: Aerospace, radar, precision-guided weapons, stealth technology.
Relevance: GS III (Economy – Minerals & Resources, Critical minerals, Trade & Industrial Policy; Science & Technology – Clean energy tech, EVs, high-tech devices; Security – Strategic minerals, Defence applications; International Relations – India–China trade, MSP, global supply chains)
China’s Dominance
- Reserves: Nearly 50% of world reserves (IEA).
- Production: >60% of global production in last 5 years.
- Refining: 92% of global refining capacity.
- Exports: Largest exporter (≈30% of global demand).
- Restrictions:
- 2023 – banned export of processing tech.
- April 2025 – curbed export of 7 REEs (esp. for NdFeB magnets).
- 2025 interim measures – quotas + govt approval for trade.
- Research Strength: 30% of global REE research papers (vs. U.S. & Japan ≤10%, India ≈6%).
- Funding: $14 billion annually (2022–24) in mineral exploration (highest in decade).
India’s Position
- Imports: 75%+ of rare earth imports from China (since 2021).
- Reserves: Significant monazite sands (Odisha, Kerala, Andhra Pradesh, Tamil Nadu).
- Production: Limited; India contributes <2% of global REE output due to policy restrictions.
- Institutions:
- Indian Rare Earths Limited (IREL): PSU under DAE for mining/processing.
- Atomic Minerals Directorate (AMD): Exploration of monazite and other RE-bearing minerals.
- Challenges:
- Monazite contains thorium → falls under Atomic Energy Act, limiting private sector participation.
- Processing & refining bottlenecks → India exports raw ores but imports refined products.
Overview
Strategic & Security Dimension
- Rare earths are “critical minerals” → essential for Atmanirbhar Bharat in defence & clean energy.
- Over-dependence on China creates strategic vulnerability (supply disruptions, price manipulation).
- U.S.–China tensions show weaponisation of REEs as a geopolitical tool.
Economic Dimension
- Global clean energy transition (EVs, wind) → REE demand projected to triple by 2040 (IEA).
- India’s electronics & EV targets (30% EV penetration by 2030) → rising REE demand.
- Import dependence threatens current account stability.
Technological Dimension
- Refining & separation of REEs is highly complex, polluting, and capital-intensive.
- China’s dominance lies not just in reserves, but mastery of refining tech.
- India lags in R&D, recycling, and processing capacity.
Environmental Dimension
- REE mining/refining causes radioactive & chemical waste → ecological concerns.
- Need for green processing methods, circular economy (REE recycling from e-waste).
Political & Global Dimension
- Rare earths are now at the heart of critical mineral diplomacy.
- U.S., Japan, EU, Australia diversifying supply chains via alliances (e.g., Minerals Security Partnership – MSP).
- India is part of MSP (2023) → chance to collaborate on exploration, refining, and supply chain resilience.
Social Dimension
- Local communities near REE-rich coasts (Kerala, Odisha) face livelihood & displacement issues from mining.
- Balancing resource exploitation with social/environmental safeguards is key.
Ethical Dimension
- Resource nationalism vs. equitable access debate.
- Data parallels with “resource curse” → risk of exploitation without inclusive growth.
Way Forward for India
- Policy Reforms: Amend Atomic Energy Act to allow private/foreign participation in non-nuclear REEs.
- Exploration: Accelerate surveys under NMET (National Mineral Exploration Trust).
- Processing Tech: Invest in refining & separation technologies (AIIMS + CSIR collaborations).
- Recycling: Promote urban mining of e-waste (rare earth recovery).
- Strategic Stockpiling: Build reserves for critical sectors (defence, EVs, power).
- Global Partnerships: Deepen cooperation via MSP, Quad, and bilateral deals with Australia, U.S., Japan.
Static Knowledge
- IEA Definition: REEs = 17 metals, critical for clean energy transition.
- India’s Monazite Reserves: ~12 million tonnes, mostly in beach sands.
- Institutions: IREL, AMD, BARC’s rare earth metallurgy division.
- Global Context: REEs included in U.S. “Critical Minerals List” & EU “Strategic Raw Materials Act (2023)”.
