In order to guarantee the consistent supply of rare earth elements (REEs) essential to strategic industries, the Indian government is getting ready to introduce the National Critical Mineral Stockpile (NCMS).
In light of China’s recent export restrictions on rare earth magnets—which are necessary for wind turbines, electric cars, and sophisticated electronics—the program aims to reduce the risks associated with disruptions in the global supply chain.
The NCMS will first focus on accumulating a two-month supply of rare earth elements, authorities said. To speed up procurement, processing, and storage, the government has put forth a concept of active public-private cooperation. The strategy is a component of India’s larger initiative to establish robust supply chains for commodities essential to high-tech manufacturing, renewable energy, and defense.
Although rare earth elements are the immediate emphasis, additional important and strategic minerals like nickel, cobalt, and lithium will eventually be included in the NCMS framework. The National Critical Minerals Mission (NCMM), which has set aside ₹500 crore to combat supply interruptions and provide resource security for domestic sectors, is in line with the goals of this incremental growth.
India’s current initiative to localize rare earth production is strengthened by the NCMS. An incentive package worth ₹7,300 crore was authorized earlier this year by an interministerial body to encourage the production of rare earth magnets, with a five-year objective of 6,000 tonnes. These magnets serve as the technological foundation for radar systems, wind turbines, electric vehicle motors, and electronics utilized in defense and aerospace.
After China tightened its control over upstream processing and downstream production by imposing new limitations on rare earth magnet exports, global volatility increased. The possibility of global supply chain fragmentation increased after US President Donald Trump announced possible 100% taxes on imports of rare earths from China. India’s action attempts to strengthen its domestic strategic autonomy while protecting its businesses from these geopolitical concerns.
13.15 million tonnes of monazite deposits contain the majority of India’s estimated 7.23 million tonnes of rare earth oxide. In Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra, these can be found in both coastal and interior areas. In order to speed up sector development, the Ministry of Mines recently opened the sixth tranche of its five rounds of auctions for 55 strategic and vital mining blocks, of which 34 were successfully granted.
India’s technological limits in extraction and processing provide a significant obstacle despite its vast deposits. Reliance on imports from China, Malaysia, and other international sources is necessary due to the existing lack of domestic capability for processing monazite to extract rare earth oxides.
Experts contend that in order to make the NCMS feasible, it will be crucial to enhance domestic extraction and separation technologies through investments in solvent extraction, hydrometallurgy, and advanced material recycling.
The creation of a national stockpile marks a calculated shift toward key material self-reliance, putting India in a position to protect its defense industries, semiconductor ecosystem, and renewable energy transition.
Together, the NCMS and NCMM are anticipated to boost domestic refining infrastructure, private investment, and research cooperation, assisting India in becoming less susceptible to supply shocks from outside sources and enhancing its industrial competitiveness over the next ten years.
