Report Overview

Increasing use of rare earth metals as critical elements in the strategically important end user industries, supportive policies and increasing incentives, the continuous high adoption of electric vehicles (EVs), and the thriving renewable energy are expected to boost the growth of India Rare Earth Metals Market during the forecast period between 2026 and 2032.

India Rare Earth Metals Market – Industry Trends & Forecast Report, 2032

India Rare Earth Metals Market size was estimated at USD 50.93 million in 2025. During the forecast period from 2026 to 2032, India Rare Earth Metals Market size is projected to grow at a CAGR of10.94% reaching a value of USD 105.33 million by 2032. The expansion of India Rare Earth Metals Market at a significant growth rate is predominantly driven by the nation’s rising focus on strengthening its strategic self-reliance and a surging demand for rare earth elements from the nation’s thriving electric vehicles (EVs) and renewable energy sector. The Indian government’s favorable policies and incentives, such as National Critical Mineral Mission (NCMM) approved in January 2025 and the INR 7,280 crore worth Production-Linked Incentive (PLI) scheme for Rare Earth Magnets announced in November 2025 are projected to further boost the boost the growth of India Rare Earth Metals Market. As part of the global supply chain diversification to thwart China’s dominance in the global market, India is also forming partnerships with rare earth metals exporting countries, including Australia and Zambia.

  Source: BlueWeave Consulting

Rare Earth Metals – Overview

Rare earth metals consist of 17 elements (15 lanthanides, scandium, and yttrium) that have similar chemical properties. Rare earth elements are found abundantly in the Earth’s crust. They, however, are too hard for easy extraction, as they are not found in concentrated form for easy and feasible extraction. Rare earth elements have special magnetic and luminescent properties that are important for manufacturing high-performance magnets used in EV motors, direct-drive wind turbines, and advanced defense systems, including missile guidance and radar. China controls approximately 70% of mining and 85% of refining capacity. India aims to reduce its dependence by diversifying its rare earth metals supply chain with new mining projects, strategic stockpiling, and advanced recycling technologies.

India Rare Earth Metals Market 

Growth Drivers

Surging Demand for Rare Earth Magnets for EV Motors

Rare earth elements paly critical role in automotive, consumer electronics, renewable energy, petroleum refining, and defense & aerospace industries that are strategically important for any country in the world. Hence, India focuses on the domestic mining and refining of rare earth metals. India is rapidly adopting electric vehicles (EVs) with the significant regulatory, policy, and incentive support. During the third quarter of 2025, India had more than 5.5 million EVs in operation. By November 2025, more than two million EVs have been registered annually. Going forward, EV sales are expected to continue to increase in India. Rare earth elements are important in the production of permanent magnets in EV motors. As a result, the Indian government launched the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with the financial allocation of INR 7,280 crore in November 2025 to establish 6,000 metric tons per annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India. As a result, automotive is the leading end use industry of India Rare Earth Metals Market.

Challenges

Limited Rare Earth Elements Processing Capacity

Lack of technological expertise and processing infrastructure could affect the growth of India Rare Earth Metals Market. As per an industry estimate, India holds the world’s third largest deposit of rare earth metals, after China and Brazil. However, the nation lacks the capacity of processing the huge reserves of rare earth metals. In the rare earth elements market, India primarily extracts raw concentrates from coastal monazite sands. But the country does not have the advanced technology for chemical separation and refining, particularly for heavy rare earth elements (HREEs), including dysprosium. In addition, India lacks the strategically critical processing of rare earth metal ore into alloys and high-performance magnets. Consequently, India highly depends on China, the dominant player in the global rare earth metals value chain. To reduce its heavy reliance on other countries, India has heightened its focus on diversifying its rare earth metals supply chain, through offering significant incentives for the domestic players and forming partnerships with other mineral rich countries across the regions.

Impact of Escalating Geopolitical Tensions on India Rare Earth Metals Market 

Intensifying geopolitical tensions among countries, especially the world’s major economies China and the United States, across the regions could impact the growth of India Rare Earth Metals Market by affecting global supply chains, increasing import costs, and creating trade uncertainties. Escalating volatilities in political, military, trade, and economic conditions could significantly destabilize trade flows, supply chains, and investors’ confidence. Tariffs, sanctions, and regional conflicts, especially involving China and United States, increase costs and limit access to rare earth metals. During these uncertain times, the government looks for securing the supply chain of rare earth metals for its mission critical sectors. The import-dependent countries, like India, could be vulnerable to global shifts, while retaliatory measures threaten export competitiveness. Geopolitical, military, trade, and trade tensions force manufacturers to diversify sourcing and adopt risk-mitigation strategies, reshaping production dynamics.

India Rare Earth Metals Market 

Segmental Coverage

India Rare Earth Metals Market – By Element

Based on element or metal type, India Rare Earth Metals Market is divided into Light Rare Earth Elements (LREE) and Heavy Rare Earth Elements (HREE). The LREE segment holds a larger market share of India Rare Earth Metals Market by element, as LREEs are found in abundant monazite sand resources in India. The LREE segment consists of Neodymium, Cerium, Lanthanum, Praseodymium, Samarium, and other LREEs. Among LREEs, Neodymium holds the largest market share. The HREE segment is comprised of Dysprosium, Terbium, Yttrium, Europium, Lutetium, Gadolinium, and other HREEs. India mostly imports HREEs from other countries.

Source: BlueWeave Consulting

India Rare Earth Metals Market – By Application

India Rare Earth Metals Market by application is divided into Permanent Magnets, Catalysts, and other applications. The permanent magnets segment holds the largest market share of India Rare Earth Metals Market by application, primarily due to their use in electric vehicles (EVs). The rapidly increasing adoption of EVs could further strengthen the segment’s market dominance. Rare earth elements are used as catalysts primarily in petroleum refining and automotive exhaust systems. Other applications includes battery alloys (NiMH), glass polishing, metallurgy, ceramics, and phosphors for displays.

Source: BlueWeave Consulting

India Rare Earth Metals Market – By End Use Industry

On the basis of end use industry, India Rare Earth Metals Market is divided into Automotive, Renewable Energy, Defense & Aerospace, and Consumer Electronics. The rapidly rising demand for EVs makes the automotive industry to increasingly use permanent magnets in their EVs. Rare earth metals are majorly used for making permanent magnets. Solar and wind energy segments of the renewable energy industry use rare earth elements for making wind turbines generators and solar energy infrastructure. The defense & aerospace players use rare earth metals in missile guidance systems, radar, and making high-strength alloys. Rare earth elements play critical role in smartphones, laptops, and lighting of consumer electronics industry.

Source: BlueWeave Consulting

India Rare Earth Metals Market – By Region

Geographically, India Rare Earth Metals Market is segmented into North India, South India, East India, and West India. South India, with its states Tamil Nadu, Kerala, Telangana, Karnataka, and Andhra Pradesh, accounts for the major market share of India Rare Earth Metals Market. The state governments in the southern part of India have established new manufacturing hubs to attract investments. For instance, Andhra Pradesh has an industry cluster for heavy rare earth elements (REEs) and Tamil Nadu has established a magnet manufacturing region. NLC India, headquartered in Tamil Nadu, signed a MoU with IREL in May 2025 to jointly explore and process critical minerals.

 

Source: BlueWeave Consulting

Competitive Landscape

Major companies operating in India Rare Earth Metals Market include Coal India Limited, Gujarat Mineral Development Corporation (GMDC), Hindustan Copper Limited (HCL), Hindustan Zinc, IREL (India) Limited, JSW Rare Earths, Kerala Minerals & Metals Ltd (KMML), Khanij Bidesh India Limited (KABIL), Midwest Advanced Materials (MAM), NLC India Limited (NLCIL), NMDC Limited, Toyotsu Rare Earths India, Trimex Sands, and V.V. Mineral. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2025 – The Government of India announced the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with the financial allocation of INR 7,280 crore to establish 6,000 metric tons per annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.

• In 2025 - The INR 1,500-crore worth recycling scheme was approved by the Indian government to recover rare earth metals from the rapidly accumulating voluminous electronic waste across the country.

• In May 2025 – NLC India Limited (NLCIL), based in Neyveli, Tamil Nadu, signed a memorandum of understanding (MoU) with IREL (India) Limited, headquartered in Visakhapatnam, Andra Pradesh, to jointly explore and process critical minerals.

• In January 2025 – The Indian government launched the National Critical Mineral Mission (NCMM) with the total outlay of INR 16,330 crore to build end-to-end self-reliance in the value chain from exploration to processing of rare earth metals.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2032
	Base Year – 2025
	Estimated Year – 2026
	Forecast Period – 2026–2032
Facts Covered	Revenue in USD Million
Market Coverage	India
Product/ Service Segmentation	Element, Application, End Use Industry, Region
Key Players	Coal India Limited, Gujarat Mineral Development Corporation (GMDC), Hindustan Copper Limited (HCL), Hindustan Zinc, IREL (India) Limited, JSW Rare Earths, Kerala Minerals & Metals Ltd (KMML), Khanij Bidesh India Limited (KABIL), Midwest Advanced Materials (MAM), NLC India Limited (NLCIL), NMDC Limited, Toyotsu Rare Earths India, Trimex Sands, V.V. Mineral

By Element

• • Light Rare Earth Elements (LREE)

    • Neodymium

    • Cerium

    • Lanthanum

    • Praseodymium

    • Samarium

    • Others

  • Heavy Rare Earth Elements (HREE)

    • Dysprosium

    • Terbium

    • Yttrium

    • Europium

    • Lutetium

    • Gadolinium

    • Others

By Application

• • Permanent Magnets

  • Catalysts

  • Others

By End Use Industry

• • Automotive

  • Renewable Energy

  • Defense & Aerospace

  • Consumer Electronics

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Rare Earth Metals Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Surge in Demand for Rare Earth Metals
         2. Growing Adoption of Electric Vehicles
         3. Government’s Supportive Policies               
      2. Restraints
         1. High Costs
         2. Highly Fragmented Rare Earth Metals Market
      3. Opportunities
         1. Growing Use of Rare Earth Metals
         2. Rising Demand for Rare Earth Elements in Industrial Applications       
      4. Challenges
         1. Lack of Processing Capacity
         2. Stringent Regulations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Rare Earth Metals Market: Marketing Strategies
5. India Rare Earth Metals Market: Pricing Analysis
6. India Rare Earth Metals Market Overview
   1. Market Size & Forecast, 2019–2032
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Element
         1. Light Rare Earth Elements (LREE)
            1. Neodymium
            2. Cerium
            3. Lanthanum
            4. Praseodymium
            5. Samarium
            6. Others
         2. Heavy Rare Earth Elements (HREE)
            1. Dysprosium
            2. Terbium
            3. Yttrium
            4. Europium
            5. Lutetium
            6. Gadolinium
            7. Others
      2. By Application
         1. Permanent Magnets
         2. Catalysts
         3. Others
      3. By End Use Industry
         1. Automotive
         2. Renewable Energy
         3. Defense & Aerospace
         4. Consumer Electronics
      4. By Region
         1. East India
         2. West India
         3. South India
         4. North India
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Rare Earth Metals Market Company Market Share Analysis, 2025
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on India Rare Earth Metals Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Coal India Limited
   2. Gujarat Mineral Development Corporation (GMDC)
   3. Hindustan Copper Limited (HCL)
   4. Hindustan Zinc
   5. IREL (India) Limited
   6. JSW Rare Earths
   7. Kerala Minerals & Metals Ltd (KMML)
   8. Khanij Bidesh India Limited (KABIL)
   9. Midwest Advanced Materials (MAM)
   10. NLC India
   11. NMDC Limited
   12. Toyotsu Rare Earths India
   13. Trimex Sands
   14. V.V. Mineral
   15. Other Prominent Players    
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.   Quantitative Research
    3.   Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5.   Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

 

List of Figures

 

Figure 1       India Rare Earth Metals Segmentation

Figure 2       India Rare Earth Metals Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2025

Figure 4       India Rare Earth Metals Market Size, By Value (USD Million), 2019–2032

Figure 5       India Rare Earth Metals Market Share, By Element, By Value, 2019–2032

Figure 6       India Rare Earth Metals Market Share, By Application, By Value, 2019–2032

Figure 7       India Rare Earth Metals Market Share, By End Use Industry, By Value, 2019–2032

Figure 7       India Rare Earth Metals Market Share, By Region, 2019–2032

Figure 8       North India Rare Earth Metals Market Share, By Element, By Value, 2019–2032

Figure 9       North India Rare Earth Metals Market Share, By Application, By Value, 2019–2032

Figure 10     North India Rare Earth Metals Market Share, By End Use Industry, By Value, 2019–2032

Figure 11     South India Rare Earth Metals Market Share, By Element, By Value, 2019–2032

Figure 12     South India Rare Earth Metals Market Share, By Application, By Value, 2019–2032

Figure 13     South India Rare Earth Metals Market Share, By End Use Industry, By Value, 2019–2032

Figure 14     East India Rare Earth Metals Market Share, By Element, By Value, 2019–2032

Figure 15     East India Rare Earth Metals Market Share, By Application, By Value, 2019–2032

Figure 16     East India Rare Earth Metals Market Share, By End Use Industry, By Value, 2019–2032

Figure 17     West India Rare Earth Metals Market Share, By Element, By Value, 2019–2032

Figure 18     West India Rare Earth Metals Market Share, By Application, By Value, 2019–2032

Figure 19     West India Rare Earth Metals Market Share, By End Use Industry, By Value, 2019–2032

 

List of Tables

 

Table 1         India Rare Earth Metals Market Size, By Value (USD Million), 2019–2032

Table 2         India Rare Earth Metals Market Size, By Element, By Value, 2019–2032

Table 3         India Rare Earth Metals Market Size, By Application, By Value, 2019–2032

Table 4         India Rare Earth Metals Market Size, By End Use Industry, By Value, 2019–2032

Table 5         India Rare Earth Metals Market Size, By Region, By Value, 2019–2032

Table 6         North India Rare Earth Metals Market Size, By Element, By Value, 2019–2032

Table 7         North India Rare Earth Metals Market Size, By Application, By Value, 2019–2032

Table 8         North India Rare Earth Metals Market Size, By End Use Industry, By Value, 2019–2032

Table 9         South India Rare Earth Metals Market Size, By Element, By Value, 2019–2032

Table 10       South India Rare Earth Metals Market Size, By Application, By Value, 2019–2032

Table 11       South India Rare Earth Metals Market Size, By End Use Industry, By Value, 2019–2032

Table 12       East India Rare Earth Metals Market Size, By Element, By Value, 2019–2032

Table 13       East India Rare Earth Metals Market Size, By Application, By Value, 2019–2032

Table 14       East India Rare Earth Metals Market Size, By End Use Industry, By Value, 2019–2032

Table 15       West India Rare Earth Metals Market Size, By Element, By Value, 2019–2032

Table 16       West India Rare Earth Metals Market Size, By Application, By Value, 2019–2032

Table 17       West India Rare Earth Metals Market Size, By End Use Industry, By Value, 2019–2032

Table 18 Coal India Limited Company Overview

Table 19 Coal India Limited Financial Overview

Table 20 Gujarat Mineral Development Corporation (GMDC) Company Overview

Table 21 Gujarat Mineral Development Corporation (GMDC) Financial Overview

Table 22 Hindustan Copper Limited (HCL) Company Overview

Table 23 Hindustan Copper Limited (HCL) Financial Overview

Table 24 Hindustan Zinc Ltd Company Overview

Table 25 Hindustan Zinc Ltd Financial Overview

Table 26 IREL (India) Limited Company Overview

Table 27 IREL (India) Limited Financial Overview

Table 28 JSW Rare Earths Company Overview

Table 29 JSW Rare Earths Financial Overview

Table 30 Kerala Minerals & Metals Ltd (KMML) Company Overview

Table 31 Kerala Minerals & Metals Ltd (KMML) Financial Overview

Table 32 Khanij Bidesh India Limited (KABIL) Company Overview

Table 33 Khanij Bidesh India Limited (KABIL) Financial Overview

Table 34 Midwest Advanced Materials (MAM) Company Overview

Table 35 Midwest Advanced Materials (MAM) Financial Overview

Table 36 NLC India Company Overview

Table 37 NLC India Financial Overview

Table 38 NMDC Limited Company Overview

Table 39 NMDC Limited Financial Overview

Table 40 Toyotsu Rare Earths India Company Overview

Table 41 Toyotsu Rare Earths India Financial Overview

Table 42 Trimex Sands Company Overview

Table 43 Trimex Sands Financial Overview

Table 44 V.V. Minerals Company Overview

Table 45 V.V. Minerals Financial Overview