Published: 9 September 2025Economy
China Dominates Rare Earth Elements: India Produces Less Than 2% of Global Output
A report highlighted on September 10, 2025 reveals the stark gap between China and India in Rare Earth Elements (REEs). China controls 50% of global reserves, over 60% of production, and 92% of refining capacity. India, despite having significant deposits, produces less than 2% of global output and imports over 75% of its REE needs from China.
China leads with 30% of global REE research papers while India accounts for approximately 6%. REEs are critical for electronics, electric vehicles, wind turbines, and defence systems. The report calls for India to accelerate domestic mining and processing capabilities, particularly at deposits in Rajasthan, Odisha, and Andhra Pradesh, to reduce strategic dependence.
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What does NFAP-2025 released by DoT in December 2025 stand for?
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Frequently asked questions
Why does China dominate rare earth elements production globally?
**China controls 50% of global Rare Earth Element reserves, over 60% of production, and 92% of refining capacity**. China controls over **60% of global rare earth mining** and **90% of processing capacity**, giving it dominant market power.
What is India's share in global rare earth element production?
**India produces less than 2% of global rare earth output** despite having significant deposits. **India produces less than 2% of global REE output and imports over 75% of its REE needs from China**.
What are rare earth elements and why are they strategically important?
**Rare earth elements are 17 metals critical for electronics, EVs, defence systems, and renewable energy** technologies. **China leads with 30% of global REE research papers while India accounts for approximately 6%**.
How can India increase its rare earth element production to reduce dependence on China?
**REEs are critical for electronics, electric vehicles, wind turbines, and defence systems**. India must invest in mining, processing technology, and deep-sea exploration to build rare earth independence.
Where are India's major rare earth element deposits located?
**Report calls for India to accelerate domestic mining and processing, particularly at deposits in Rajasthan, Odisha, and Andhra Pradesh**. Major Indian rare earth deposits are in Odisha, Andhra Pradesh, Kerala (monazite sands), and Rajasthan.
