Why in news?
- Indian Rare Earths Limited (IREL) has announced plans to increase production of the rare earth element neodymium to about 500 tonnes by FY 27, up from roughly 200 tonnes expected in FY 26.
- The expansion aims to strengthen India’s supply of critical minerals vital for electric vehicles, renewable energy and defence technologies.
Background
- Neodymium is essential for high‑strength permanent magnets used in EV motors, wind turbines, audio equipment and military systems. China dominates global production, making supply vulnerable to geopolitical tensions.
- IREL, a state‑owned enterprise under the Department of Atomic Energy, operates extraction and refining facilities in Odisha and Kerala. It produces eight of the 17 rare earths, including neodymium, praseodymium and dysprosium.
- The National Critical Mineral Mission seeks to secure strategic mineral supplies and develop domestic processing and manufacturing capabilities.
Expansion plans
- IREL expects production of neodymium and praseodymium to more than double within a year through indigenous engineering improvements.
- The company has built a rare‑earth permanent magnet plant for samarium‑cobalt magnets used in defence and atomic energy applications.
- India currently accounts for about 5–6 % of the global rare‑earth market and ranks third in production and sixth in reserves.
Significance
- Boosting domestic supply will reduce reliance on imports, support electric vehicle manufacture and enhance national security.
- The National Critical Mineral Mission envisions investment of more than ₹16,000 crore (US$1.84 billion) to strengthen supply chains and promote technology localisation.
- Developing extraction, refining and magnet‑manufacturing capabilities can create skilled jobs and position India as a global player in rare earths.
Conclusion
By expanding neodymium production and investing in downstream technologies, India is taking proactive steps to secure critical minerals essential for a sustainable and strategic future. Success will require environmentally responsible extraction, efficient processing and coordination between government and industry.
Source: IBEF