What Happened
- Union Minister Jitendra Singh informed Lok Sabha on April 1, 2026 that dedicated rare earth (RE) corridors are being established in four states — Odisha, Kerala, Andhra Pradesh, and Tamil Nadu — to reduce import dependence and enhance domestic capability.
- The corridors will focus on mining, processing, research, and manufacturing of rare earth elements, aligning with national goals of self-reliance and achieving net-zero emissions by 2070.
- A Joint Working Group (JWG) comprising all stakeholders has been constituted to formulate Standard Operating Procedures (SOPs) for establishing the corridors.
- The strategic rationale: India's import reliance on key minerals used in electronics, renewable energy, electric vehicles, and defence manufacturing can be reduced through these corridors by boosting local sourcing.
Static Topic Bridges
Rare Earth Elements: What They Are and Why They Matter
Rare earth elements (REEs) are a group of 17 metallic elements — the 15 lanthanides plus scandium and yttrium — that share similar chemical properties. Despite the name, most are not geologically rare, but economically viable concentrations are uncommon. REEs are critical to modern technology: permanent magnets (neodymium, dysprosium) power EV motors and wind turbines; cerium and lanthanum are used in catalysts and optics; europium and terbium enable display screens; gadolinium is used in MRI machines.
- 17 REEs: 15 lanthanides (lanthanum to lutetium, atomic numbers 57-71) + scandium (21) + yttrium (39)
- Divided into Light REEs (LREEs: lanthanum, cerium, praseodymium, neodymium) and Heavy REEs (HREEs: europium, terbium, dysprosium, etc.); HREEs are rarer and more strategically important
- Key uses: EV motors (neodymium-iron-boron magnets), wind turbines, fighter jet components, smartphones, batteries, catalytic converters, MRI machines, night-vision equipment
- China controls ~60% of global REE mining, ~85% of processing/refining capacity, and ~90% of permanent magnet production (as of mid-2020s)
- India's REE deposits: estimated at 6.9 million tonnes (MT) — among the world's largest — primarily in monazite sands along the coastal shores of Kerala, Tamil Nadu, Andhra Pradesh, and Odisha
- India is the world's 5th largest holder of REE reserves but a minor producer due to limited processing infrastructure
Connection to this news: The four states identified for RE corridors are precisely the coastal states with India's monazite-rich mineral sand deposits — the government is seeking to convert India's geological endowment into an industrial capacity, moving up the value chain from raw material extraction to processing and manufacturing.
India's Mineral Policy: MMDR Act, Critical Minerals List, and KABIL
India's mining and minerals governance is primarily governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), which has been amended significantly in 2015, 2021, and 2023 to liberalise the mining sector and attract investment. In 2023, the government released India's Critical Minerals List — a policy document identifying 30 minerals (including lithium, cobalt, nickel, REEs) as critical for strategic industries.
- MMDR Act, 1957 (amended 2015, 2021, 2023): Governs mineral concessions; 2021 amendment introduced auctioning of composite licences and removed captive mine restrictions to boost supply
- Atomic Minerals: REE-bearing monazite sands in India contain thorium — a radioactive material; hence REEs are classified as Atomic Minerals under the Atomic Energy Act, 1962, and can only be processed by government entities (primarily Indian Rare Earths Ltd — IREL)
- IREL (India) Ltd: PSU under Department of Atomic Energy; primary miner and processor of monazite sands; produces mixed rare earth compounds for export and domestic use
- KABIL (Khanij Bidesh India Ltd): JV of NALCO, HCL, and MECL formed in 2019 to secure overseas critical mineral assets (lithium, cobalt, REEs); acquired lithium blocks in Argentina (2023)
- Critical Minerals List (2023): 30 minerals; includes lithium, cobalt, nickel, graphite, titanium, niobium, REEs
- PM Gati Shakti + National Critical Mineral Mission (2024): Framework for coordinated mining, processing, and recycling of critical minerals
Connection to this news: The RE corridors represent an institutional evolution beyond IREL's existing mandated role — creating spatially concentrated, multi-functional zones that combine mining, processing, R&D, and manufacturing, similar to India's special economic zone model applied to strategic minerals.
China's Dominance and Global Supply Chain Geopolitics
China's near-monopoly over REE processing is one of the most significant geopolitical supply chain vulnerabilities for advanced democracies. In 2023, China imposed export controls on gallium and germanium (critical for semiconductors); in 2024, it expanded controls to cover several REEs. This has accelerated the "friend-shoring" and "de-risking" strategies of the US, EU, Japan, Australia, and India.
- China produces ~60% of global REE mining output but processes ~85% of global supply
- China's REE export restrictions (2023-24) triggered strategic responses: US Inflation Reduction Act (IRA) incentivises domestic critical mineral processing; EU Critical Raw Materials Act (2024) sets domestic sourcing targets
- Minerals Security Partnership (MSP): US-led grouping (includes India, Australia, Canada, EU, Japan, South Korea, UK) to diversify critical mineral supply chains
- India joined the Minerals Security Partnership in 2023
- India-Australia Critical Minerals Investment Partnership: Australia has significant REE deposits and processing plans; bilateral deals for joint development
- Quad Minerals Working Group: US, India, Japan, Australia coordinate on critical mineral supply chains through the Quad framework
- REE pricing: Highly volatile; prices spiked after China's 2010 REE export restrictions and again after 2023 controls
Connection to this news: India's RE corridor initiative is part of a multilateral realignment in which democratic countries seek to break China's processing monopoly; India's own large deposits make it a potential swing supplier — the corridors aim to make India a processor, not just a raw material exporter.
Key Facts & Data
- India's REE reserves: ~6.9 million tonnes, one of the world's largest; primarily monazite coastal sands
- Four RE corridor states: Odisha, Kerala, Andhra Pradesh, Tamil Nadu
- China controls ~60% global REE mining, ~85% processing capacity
- 17 Rare Earth Elements: 15 lanthanides + scandium + yttrium
- Monazite sands in India contain thorium — classified under Atomic Energy Act, 1962
- IREL (India) Ltd: Primary government entity for REE mining and processing (under Dept of Atomic Energy)
- KABIL (2019): JV of NALCO, HCL, and MECL for overseas critical mineral acquisition
- India joined Minerals Security Partnership (US-led) in 2023
- India's Critical Minerals List (2023): 30 minerals including REEs
- MMDR Act, 1957 (last major amendment: 2023) governs mineral concessions
- Net-zero emissions target cited by government: 2070