India Doubles Down on Domestic Output of Critical Minerals

• India halts rare-earth exports; targets 450 t neodymium by 2026.
• ₹34,300 cr mission launched for full mineral value chain.
• ₹1,345 cr magnet push, auctions, and global tie-ups underway.

India is taking serious steps to accelerate its domestic critical minerals ecosystem in response to China’s recent export restrictions, including rare earths needed for high-tech manufacturing and the automotive sector. The state-owned miner IREL has been directed to halt exporting, especially with Japan, to reserve such products such as neodymium for domestic use, with a goal of producing 450 metric tonnes by March 2026 and 900 metric tonnes by 2030.

The government has announced the National Critical Minerals Mission (NCMM), which is a seven-year project at a cost of ₹34,300 crore (£3,420 million) (₹16,300 crore from the government, ₹18,000 crore from public sector units).  The aim is to cover all processes of mineral value chains from exploration, beneficiation and processing, to recycling and stockpiling.

India has initiated four tranches of auctions for critical mineral blocks, and it has indicated its intention to auction more than 1,200 exploration projects by 2030. With the Geological Survey of India currently implementing 195 projects, including deep country exploration in 15 different states, the country is undertaking a huge exploration endeavor. Related regulatory reforms to the Mines and Minerals (Development and Regulation) Act are moving ahead with some urgency to contemplate rapid approvals and investment.

Also Read: Mahindra, Minda Plan Local Magnet Production in India: Sources

A ₹1,345 crore incentive program to promote domestic production of rare earth magnets, which are critical inputs for EVs, medical devices, and electronics, has been initiated. Indian companies have expressed significant interest in producing magnets to lessen import dependence.

Analysts and industry leaders have indicated that there is a risk of immediate supply constraints: India imported more than 53,000 ton of rare earth magnets in FY 2025, and interruptions caused by Chinese export restrictions can constrain the auto, electronics, machinery, metals and construction industries.

India has also made several key strategic initiatives: they are progressively developing overseas critical minerals partnerships through KABIL (Khanij Bidesh India Ltd.) in countries such as Argentina and India is establishing its platform in the Mineral Security Partnership to diversify away from Chinese supply , holding access to critical minerals globally.As part of furthering resilience, India is introducing multiple circular-economy approaches—including recycling projects—to extract critical minerals from tailings and e-waste to alleviate supply constraints in the future.