Blitz Bureau
NEW DELHI: In a major discovery that could lead in India becoming self-sufficient in rare earth elements (REEs), and even challenging China’s overwhelming dominance in the sector, massive deposits of these rare minerals have been found in Papum Pare in Arunachal Pradesh, according to officials.
As per a recent report released by the Ministry of Mines, a large deposit of neodymium, a rare earth metal widely used in electric vehicles (EVs), modern electronics and rare earth magnets, was discovered in the region, the Economic Times reported.
Additionally, REE deposits have been discovered in Karbi Anglong in Assam and Sung Valley in Meghalaya, while similar deposits are believed to exist in Singrauli region of Madhya Pradesh, the ministry said.
Experts believe the crucial discovery of REE deposits would enable India to reduce its massive dependence on China for rare earth exports, which account for up to 90 per cent of total REE exports to India.
An indigenous supply of rare earth metals could boost India’s technological and industrial development as well as propel the country’s economy to the next level. Additionally, India will no longer be at the mercy of China’s policies as local reserves would ensure uninterrupted supply.
At present, India’s produces a tiny 1 per cent of the world’s total REE output, while China dominates the market, with 70 per cent REE production and owning 90 per cent refining capacity. This means that India would need to increase REE production and refining at war footing to become self-sufficient and reduce dependence on China.
According to official estimates, China controls more than 90 per cent production of rare earth magnets, but imposed restrictions on their export in April in response to the tariffs imposed by US President Donald Trump.
Super magnets or rare earth magnets are used in the manufacturing of all kinds of advanced equipment ranging from EVs to military drones and radar systems. According to industry estimates, India expects to import 700 tonne of magnets worth $30 million this year, a major chunk of which comes from China.
As per customs data, Chinese exports of permanent magnets fell 51 per cent to 2,626 tonne in April after the export ban came into force, while India imported 460 tonne of rare earth magnets, most of which came from China, in the financial year that ended on March 31, 2025.