The Geological Survey of India (GSI) has confirmed the presence of rare earth element (REE) reserves in the Karbi Anglong district of Assam. According to the GSI, the discovered elements include lanthanum, cerium, neodymium, and yttrium, minerals classified as rare earths due to their complex extraction process despite relatively widespread presence in the Earth’s crust. These findings were made public as part of GSI’s recent geological report following reconnaissance and preliminary mineral mapping in the region.
India currently holds considerable potential in the rare earth industry, but its production and processing capacity remains limited. According to the Indian Bureau of Mines and the Atomic Minerals Directorate, monazite-bearing beach sands in Odisha, Kerala, and Tamil Nadu contain significant quantities of rare earths, especially light REEs. However, heavy REEs, which are less common but more critical for high-end electronics and defence technologies, are more difficult to access and have higher market value. The Assam deposit includes both light and heavy REEs, offering India a more diversified resource base than previously accessible.
India’s processing capability is largely centred on Indian Rare Earths Limited (IREL), with facilities in Kerala (RED), Odisha (OSCOM) and Visakhapatnam’s Rare Earth Permanent Magnet (REPM) plant, which produces samarium-cobalt magnets (3 tonnes annually). IREĽ’s monazite processing capacity is around 10,000 tonnes per annum, though actual production remains at the 2,900-tonne level. Heavy REE separation remains underdeveloped, preserving dependence on Chinese imports.
The need for self reliance in rare earths is imperative for India’s electric vehicle (EV) sector, which is poised for exponential growth. Rare earth magnets, especially those based on neodymium, are critical for high-efficiency EV motors. With Chinese suppliers controlling about 90% of the global magnet market, Indian automakers such as Mahindra & Mahindra, Uno Minda, and Sona Comstar have initiated plans to localise magnet production.
In June 2025, the Indian government directed IREL to temporarily suspend neodymium exports to Japan and prioritise domestic supply to ensure adequate stock for local manufacturers. Production targets have been raised to 450 tonnes per year by 2026 and 900 tonnes by 2030, according to internal communications reviewed by multiple sources. India is also expanding its engagement with the Mineral Security Partnership (MSP), led by the United States, to develop resilient and transparent supply chains for minerals
Internationally, India is strengthening supply partnerships through Khanij Bidesh India Ltd (KABIL), a state-run venture focused on securing overseas critical mineral assets. KABIL is actively exploring investment opportunities in Myanmar, Central Asia, Argentina, Australia, and Africa to ensure a more stable and diverse resource base.
The Karbi Anglong discovery, while promising, must be viewed with caution. The region is ecologically sensitive and home to numerous indigenous communities. Any mining activity will require strict compliance with environmental regulations, the Forest Rights Act, and local stakeholder engagement.
According to the International Energy Agency, demand for rare earths used in clean energy technologies is expected to rise three to seven times by 2040. The Karbi Anglong discovery arrives at a crucial time for India. It has the potential to reduce reliance on Chinese REEs, strengthen domestic industries, and support the country's transition toward renewable energy and advanced manufacturing. However, its value can only be realised if India can overcome the challenges related to regulation, processing technology, community consent, and environmental safeguards.
Dhanishtha De is a trainee journalist at Cult Current. The views expressed in the article are
her ownand do not necessarily reflect the official stance of Cult Current.