From reserves to reality: India’s rare earth value-chain race

Recent policy measures signal India’s intent to strengthen its rare earth and critical mineral supply chain and reduce import dependence; however, the availability of reserves alone is not sufficient, as building the full value chain requires substantial investment, technical capability and time.

In its Union Budget 2026–27, the Indian government introduced dedicated rare earth corridors in four states — Odisha, Kerala, Andhra Pradesh and Tamil Nadu — to develop mining, processing, research and manufacturing of rare earths. The corridors are intended to stimulate local economies, enhance R&D capacity and integrate the region into global advanced materials value chains. They complement the operations of IREL (India) Limited, a Department of Atomic Energy enterprise that has processed roughly 1 million metric tons of strategic minerals annually since 1963 and operates a rare earth extraction plant in Odisha and a rare earth refining unit in Aluva, Kerala. Linking IREL’s facilities with the new corridors is aimed at increasing domestic rare earth production, fostering advanced manufacturing and supporting broader self-reliance and clean energy objectives.