Relevance (UPSC): GS-III – Economy (Industry, Critical Minerals) | GS-II – International Relations

Overview

Rare earths are key to everyday technology—phones, wind turbines, medical scanners, missiles, and electric cars. These 17 elements are abundant in the crust but hard to separate, refine, and turn into magnets. China dominates mid-stream steps (separation, metals, alloys, magnet making), giving it economic and geopolitical leverage as the world electrifies transport and power.

What exactly are rare earths and why they matter

  • Family: 15 lanthanides plus Scandium and Yttrium.
  • Magic property: Alloyed to make high-energy permanent magnets—compact and powerful.
  • Strategic pull: Needed in clean-energy targets, defence electronics, and precision manufacturing.

Key elements and their usage

Element (group)Core roleApplications
Neodymium + Praseodymium (light)High-power Nd-Fe-B magnetsElectric-car motors, wind turbines, robotics
Dysprosium / Terbium (heavy)Heat-stable magnetsTraction motors, defence actuators
Lanthanum / Cerium (light)Catalysts, glass polishingRefineries, catalytic converters, optics
Yttrium / Europium / Terbium (heavy)Phosphors, specialty ceramicsDisplays, lasers, sensors
Samarium + CobaltHeat-stable magnetsAerospace and defence electronics

Bottleneck

The main challenge is not geology but processing. Solvent extraction involves hundreds of steps, creates radioactive waste, and requires scale and skill—China dominates here. Export licenses and standards can become geo-economic levers.

Global diversification

  • New & revived projects: Mountain Pass (USA), Lynas (Australia), EU’s Critical Raw Materials push.
  • Alliances & finance: Minerals Security Partnership, public-private funds for separation and magnet recycling.
  • Circular economy: Recycling of wind rotors, hard-disk drives, motors as secondary sources of rare-earth magnets.

India’s position: promise and gaps

  • Geology: Monazite-bearing beach sands (Kerala, Tamil Nadu, Odisha, Andhra Pradesh) and inland alkaline complexes.
  • Capability: IREL recovers mixed compounds; separation, alloys, and magnets remain limited.
  • Policy moves: National critical-minerals list, overseas sourcing via Khanij Bidesh India Limited, tech partnerships, growing EV & wind demand.
  • Bottlenecks: Atomic mineral rules, few large separation parks, environmental clearance, limited domestic magnet industry.

India’s ore-to-magnet plan

StepWhere India isWhat to fix next
ExplorationBeach sands mapped; inland patchyAirborne geophysics, targeted drilling of alkaline complexes
Separation / refiningSmall solvent-extraction capacityCoastal mid-stream parks with zero-liquid discharge & lined waste cells
Metals & alloysNascentTechnology tie-ups; viability support for first plants
MagnetsVery limitedProduction-linked incentive for magnets tied to domestic motor orders
RecyclingEarly pilotsMandatory take-back; magnet-to-magnet programmes

Practical roadmap

  • Scale mid-stream safely: separation clusters with radiation & waste safeguards.
  • Create domestic magnet base: incentivise powders, sintering, coatings; co-develop dysprosium-lean grades.
  • Lock in overseas supply: equi

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