Date: 2026-03-25Category: Press ReleaseState: Union GovernmentCountry: India
India Accelerates Rare Earth and Lithium Exploration; Domestic Production Capacity of Rare Earth Permanent Magnet to Reach 5,000 Tonnes by 2030: Dr. Jitendra Singh in Lok Sabha
**Executive Summary**
This report outlines the Indian government's strategy to intensify domestic exploration of critical minerals and scale rare earth permanent magnet production to 5,000 tonnes by 2030. Presented in the Lok Sabha on March 25, 2026, the initiatives aim to address a projected demand of 8,000 tonnes by 2030 and reduce import dependence. Key actions include the liberalization of mining provisions and the launch of specialized production plants to support sectors like electric vehicles and AI.
**Key Points / Main Content**
**Production and Capacity Targets**
* India aims to reach a domestic production capacity of 5,000 tonnes for rare earth permanent magnets by 2030.
* A samarium-cobalt magnet plant in Visakhapatnam is currently operational with an initial capacity of 500 tonnes per year, scheduled to scale to 2,000 tonnes and eventually 5,000 tonnes.
* A pilot project focusing on neodymium-iron-boron permanent magnets has recently been launched.
* The current national requirement for these magnets is 4,000 tonnes, which is expected to rise to 8,000 tonnes by 2030.
**Policy and Regulatory Framework**
* The SHANTI Act and the Atomic Energy (Amendment) framework have been implemented to liberalize existing provisions and open exploration to the private sector.
* A "whole-of-government" approach is being used to coordinate efforts across various ministries to fast-track mineral development.
* The Ministry of Mines retains jurisdiction over mining-related environmental safeguards and the prevention of illegal mining.
**Exploration and Regional Initiatives**
* Preliminary lithium exploration is underway in Degana (Rajasthan), with further exploration expected to begin soon.
* Lithium exploration activities are also in progress in the Reasi district of Jammu & Kashmir.
* Rare earth corridors have been announced for Tamil Nadu, Odisha, Andhra Pradesh, and Kerala to boost processing and value addition.
* Rock-based mineral deposits are being explored in Rajasthan, Gujarat, and Jharkhand, despite their geological complexity.
**Strategic Importance**
* Critical minerals are identified as essential for electric vehicles, renewable energy, electronics, defence, aerospace, and space applications.
* These minerals are vital for the clean energy transition and supporting emerging technologies such as Artificial Intelligence (AI).
**Impact Analysis**
**Private Sector Entities**
**Impact**
The liberalization of the SHANTI Act and Atomic Energy (Amendment) framework grants private companies the opportunity to participate in the exploration and production of critical minerals.
**Action Required**
Companies must align their investment and operational strategies with the new regulatory frameworks and safeguards, particularly for strategic resources.
**High-Tech Manufacturing Industries (EV, AI, Defence)**
**Impact**
The focus on domestic production aims to create a resilient supply chain and reduce reliance on imported rare earth elements, which are essential for manufacturing components like permanent magnets.
**Action Required**
Stakeholders in these sectors should monitor the progress of rare earth corridors and domestic production capacity to optimize their future procurement and supply chain planning.
**Ministry of Mines and State Governments**
**Impact**
These bodies are responsible for the regulatory oversight of new exploration sites and the enforcement of environmental safeguards.
**Action Required**
The Ministry must manage the expansion of exploration in Rajasthan and J&K while ensuring strict adherence to environmental laws and curbing illegal mining activities.
Key Entities Referenced
SHANTI Act: Legislation aimed at liberalizing existing provisions and opening the critical minerals sector to private participation to reduce import dependence.
Atomic Energy (Amendment) framework: A policy framework that allows private sector participation in the exploration of critical minerals while maintaining safeguards for strategic resources.
Ministry of Mines: The primary government body responsible for the exploration of lithium and the oversight of mining-related regulatory and environmental safeguards.
Dr. Jitendra Singh: Union Minister of State for Science & Technology and Earth Sciences who presented the government's strategy to reach 5,000 tonnes of rare earth magnet production by 2030.
Rare earth corridors (Tamil Nadu, Odisha, Andhra Pradesh, and Kerala): Regional strategic initiatives established to strengthen the domestic ecosystem for rare earth element processing and value addition.
Department of Atomic Energy
India Accelerates Rare Earth and Lithium
Exploration; Domestic Production Capacity of
Rare Earth Permanent Magnet to Reach 5,000
Tonnes by 2030: Dr. Jitendra Singh in Lok Sabha
Liberalisation of existing provisions and opening up to private
sector through the SHANTI Act will boost domestic capacity
and reduce imports: Dr. Jitendra Singh
Lithium and rare earth elements are critical for India’s
increasing requirement in sectors such as electric vehicles,
renewable energy, electronics, defence, aerospace, and
space applications, and will also play an important role in
supporting clean energy transition as well as emerging
technologies like AI which need reliable energy systems, says
Dr Jitendra Singh
Posted On: 25 MAR 2026 3:49PM by PIB Delhi
India has intensified efforts to scale up domestic production of rare earth permanent magnets and
accelerate exploration of critical minerals such as lithium, with production capacity targeted to reach 5,000
tonnes by 2030, Union Minister of State (Independent Charge) for Science & Technology, Earth Sciences,
and MoS PMO, Dr. Jitendra Singh said in the Lok Sabha today.
Replying to a series of questions during the Question Hour in the ongoing Budget Session, the Minister
said that the country’s current requirement of rare earth permanent magnets is about 4,000 tonnes, which
is projected to rise to nearly 8,000 tonnes by 2030, highlighting the need for rapid expansion of domestic
capabilities.
The Minister informed that a pilot project on neodymium-iron-boron permanent magnets has recently
been launched, while a samarium-cobalt magnet plant at Visakhapatnam has been made operational with
an initial production capacity of 500 tonnes per year. This capacity will be scaled up to 2,000 tonnes in the
next phase and further to 5,000 tonnes by 2030.
Dr. 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.
Responding to a question by Smt. Mahima Kumari Mewar on lithium reserves in Degana, Rajasthan, the
Minister said that preliminary survey activities are already underway and further exploration is expected
to begin soon. He added that lithium exploration falls under the Ministry of Mines, and similar efforts arealso in progress in Reasi district of Jammu & Kashmir.
Dr. Jitendra Singh said that lithium and rare earth elements are critical for sectors such as electric vehicles,
renewable energy, electronics, defence, aerospace, and space applications, and will play an important role
in supporting clean energy transition as well as emerging technologies requiring reliable energy systems.
The Minister also informed that recent policy measures, including provisions under the Atomic Energy
(Amendment) framework, have opened up exploration of several critical minerals to private sector
participation, with safeguards in place for strategic resources such as uranium.
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.
The Minister said that rare earth elements are found both in beach sand minerals and rock formations, and
their exploration requires different 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.
On concerns related to environmental impact, he clarified that mining-related safeguards fall under the
jurisdiction of the Ministry of Mines and associated regulatory frameworks, and emphasized the need to
curb illegal mining.
Dr. Jitendra Singh said that 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.*****
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