Minerals, Mining, Rare Earth are not alien words. However, in the last decade the word ‘critical earth minerals’ has taken over every geopolitical dialogue and negotiations. Some countries like China & South Korea are maintaining their supremacy over critical mineral supply chains, and others countries are in over dependency for 21st century’s energy transition, mobility and advanced manufacturing.
Probably, India is coming into your thoughts where we are standing at this juncture. In 2025, India started ‘The National Critical Mineral Mission’ while envisioning securing a long-term sustainable supply of critical minerals and strengthening India’s critical mineral value chains encompassing all stages from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products.
However, India’s critical mineral story did not just begin today. In the early years of independence, India envisioned the role of rare earth mineral exploration for nation building.
IREL (India) Limited, formerly Indian Rare Earths Limited, was incorporated on August 18, 1950, and became a full Government of India undertaking under the Department of Atomic Energy (DAE) in 1963. The company’s operations expanded significantly with the commissioning of the Orissa Sands Complex (OSCOM) in 1986. With an annual processing capacity of about 10 lakh tons. IREL produces processed minerals like finest rare earth magnets and metals like Samarium-Cobalt, Cerium, and Lanthanum, as well as rare earth compounds from a plant in Odisha and a refining plant in Kerala.
Rare earth minerals are playing a vital role in various industries, especially in the EV sector. At that time, the EV or the green industry was not in full swing. However, other countries like China capitalised on ‘rare elements.’ They invested heavily on exploration, mining and refining such metals. Several industries found their use in EV’s, energy transitions and other various green industries.
Unfortunately, neither India as a nation nor IREL was able to capitalize on the first-mover advantage despite decades of vision in placed.
China is the largest producer of seven rare earths – samarium, gadolinium, terbium, dysprosium, lutetium and scandium. In today’s advanced world, these metals play a vital role in various sectors. On 4th April 2025, when the China’s Ministry of Commerce announced the export controls on rare earths, we felt the burn.
For instance, to increase the performance of the powerful permanent magnets in EV, dysprosium metal is used. Similarly, neodymium is essential for wind turbines. In short, this restriction imposed a heavy toll on various industries, especially the green industry.
Interestingly, critical minerals are more like a double edged sword. Without them, harnessing the benefits of renewable energy is a far-fetched goal. On the other hand, exploration and excavation of rare earth critical minerals are prone to radioactive emissions too.
Rare earth element mining is an energy and carbon intensive process. For example, producing samarium and gadolinium is relatively less resource-intensive, consuming 3,803 kg of water and 311 MJ of energy per kilogram. The production of yttrium stands out as the most resource-intensive, requiring a staggering 29,902 kg of water and 3,401 MJ of energy per kilogram. This significant difference underscores the unique challenges in processing individual rare earth elements.
Neodymium magnets (NdFeB) are the current standard due to their high power density and efficiency, but their supply is heavily concentrated in China, creating geopolitical and price volatility risks. Several alternatives are being explored to mitigate these risks:
Ferrite Magnets: This is the most prominent and commercially viable alternative. Ferrite magnets are made from common and abundant materials like iron oxide and strontium carbonate, making them significantly cheaper and their supply chain more stable. However, they have lower magnetic strength than rare earth magnets, meaning a motor using them would need to be larger and heavier to achieve the same performance.
Magnet-Free Motors: Some companies are developing motors that do not use permanent magnets at all. These are typically based on technologies like Synchronous Reluctance Motors (SynRMs) or Electrically Excited Synchronous Motors (EESMs)
Rare Earth-Reduced Magnets: Another approach is to reduce the amount of rare earths in the magnets rather than eliminating them entirely. For example, some manufacturers are substituting more expensive and scarce elements like dysprosium with more abundant ones like cerium and lanthanum, which still retain the necessary heat resistance and magnetic properties for high-performance motors
Researchers are exploring entirely new material compositions, such as iron nitride (FeN), which show promise in providing magnetic properties comparable to rare earth magnets but with more abundant and cheaper elements
The sanctions on EV magnets pushed the Government of India to partner with research bodies and academic institutions that are actively collaborating to develop new magnet materials. For example, research teams at institutions like IIT Bhubaneswar and the Visvesvaraya National Institute of Technology (VNIT) are focused on creating rare earth-free motors and novel magnetic compositions.
Major Indian EV manufacturers, including Ola Electric and TVS Motor, are reportedly shifting to ferrite-based electric motors for future models. This move is a strategic effort to lower costs, secure a stable supply chain, and boost domestic production.
Furthermore, some Indian companies, such as Numeros Motors, are partnering with institutions like IIT Bhubaneswar to develop magnet-free motors based on technologies like Switched Reluctance Motors (SRMs). These motors are currently being tested to ensure their performance can rival that of traditional rare earth-based motors
The NCMM (National Critical Mineral Mission) has allocated funds to promote scientific research and technological advancement in the critical minerals sector. These funds are channeled through various mechanisms The mission includes a specific budget for research and development (R&D) to develop new technologies for mineral exploration, processing, and recycling.
The government is encouraging research by providing financial assistance to academic institutions and research bodies. For example, specific funds are being directed to institutions like the Indian Institutes of Technology (IITs) to work on developing rare earth-free motors and alternative magnetic materials.
The seven institutions recognized by the Ministry of Mines, IIT Bombay, IIT Hyderabad, IIT – ISM Dhanbad, IIT Roorkee, CSIR – IMMT, Bhubaneswar, CSIR – NML, Jamshedpur, NFTDC, Hyderabad. These CoEs will operate on a “Hub & Spoke” model, with each hub collaborating with a consortium of academic and industry partners to pool expertise and resources.
The mission also plans to financially support the creation of mineral processing parks. These parks will provide the necessary infrastructure and facilities for advanced research and pilot projects, including those focused on recovering rare earths from waste products and developing new motor technologies.
Electirc Vehicle ( industry ) depends mostly on rare earth elements. Because, these rare earth materials are really crucial for making motors, batteries and sensors. (BE) A check is needed here,
Thanks for sharing such an interesting and yet challenging concept.
Prof.G.Mary Sunanda.
Professor, Education, Dr.BRAOU. Hyd