India has intensified efforts to scale up domestic production of rare earth permanent magnets and accelerate the exploration of critical minerals such as lithium, with a target to achieve a production capacity of 5,000 tonnes by 2030. Union Minister of State (Independent Charge) for Science and Technology and Earth Sciences, Jitendra Singh, informed the Lok Sabha, according to an official statement from the Department of Atomic Energy dated March 25, 2026.
Rising Demand for Rare Earth Magnets
Responding to queries during Question Hour, the Minister said the country’s current demand for rare earth permanent magnets stands at around 4,000 tonnes and is projected to double to nearly 8,000 tonnes by 2030, underscoring the need to rapidly scale up domestic capabilities.
"Liberalisation of existing provisions and opening up to private sector through the SHANTI Act will boost domestic capacity and reduce imports," the Minister said.
Expansion of Domestic Production Capacity
He noted that a pilot project on neodymium-iron-boron permanent magnets has recently been launched. Additionally, a samarium-cobalt magnet plant in Visakhapatnam has commenced operations with an initial production capacity of 500 tonnes per year. This is expected to be scaled up to 2,000 tonnes in the next phase and further expanded to 5,000 tonnes by 2030.
Jitendra Singh said that the government is working in close coordination across ministries under a whole-of-government approach to fast-track exploration and development of critical minerals.
Push for Lithium Exploration
On lithium exploration, he informed that preliminary survey activities have begun in Degana, Rajasthan, and further exploration is expected to start soon. Similar efforts are underway in the Reasi district of Jammu and Kashmir. He added that lithium exploration falls under the purview of the Ministry of Mines.
Highlighting the strategic importance of these resources, the Minister said lithium and rare earth elements are crucial for sectors such as electric vehicles, renewable energy, electronics, defence, aerospace, and space, and will play a key role in supporting India’s clean energy transition as well as emerging technologies like AI which need reliable energy systems.
Policy Reforms and Private Sector Participation
He also pointed to recent policy measures, including provisions under the Atomic Energy (Amendment) framework, which have enabled private sector participation in the exploration of several critical minerals, while retaining safeguards for strategic resources like uranium.
Development of Rare Earth Corridors
Referring to recent initiatives, he said that rare earth corridors have been announced in Tamil Nadu, Odisha, Andhra Pradesh, and Kerala to strengthen the domestic ecosystem for processing and value addition.
Geological and Environmental Considerations
Singh noted that rare earth elements occur both in beach sand minerals and rock formations, requiring varied exploration approaches depending on geological conditions. He added that some regions, including Rajasthan, Gujarat, and Jharkhand, have significant deposits of rock-based minerals which are relatively more complex to explore.
Addressing environmental concerns, he said mining safeguards are governed by the Ministry of Mines and relevant regulatory frameworks, while stressing the importance of curbing illegal mining activities.
The Minister said India is steadily strengthening its position in the critical minerals sector with a focus on reducing import dependence, enhancing domestic production, and building a resilient supply chain to support future industrial and technological growth.
