Rare Earth Corridors in India

Rare Earth Corridors

6th Feb 2026

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In News- In her Budget 2026-27 speech, the Union Finance Minister proposed to set up dedicated rare earth corridors in four coastal states in India.

What are Rare Earth Corridors?

Rare Earth Corridors refer to region-specific industrial ecosystems developed at the state level. Their objective is to integrate the entire rare earth value chain—from extraction and processing to research and manufacturing. A key focus of these corridors is the development of Rare Earth Permanent Magnets (REPMs), which are critical for advanced and strategic industries.

States Covered under Rare Earth Corridors

Kerala
Andhra Pradesh
Tamil Nadu

These states contain monazite-rich beach sands, which form the main domestic source of rare earth elements in India.

Strategic Importance of Rare Earth Permanent Magnets (REPMs)

Rare Earth Permanent Magnets are among the strongest permanent magnets, known for their high magnetic strength, stability, and compact size. These properties make them indispensable for advanced engineering and high-technology applications, including:

Electric vehicle motors
Wind turbine generators
Consumer and industrial electronics
Aerospace systems
Defence equipment
Precision sensors

India's Rare Earth Resource Base

India is fortunate to possess a substantial reserve of rare earth minerals, giving it a solid foundation to build strong downstream industries such as rare earth processing and magnet manufacturing.

Monazite Deposits:

Total reserves stand at 13.15 million tonnes.
These contain an estimated 7.23 million tonnes of rare-earth oxides (REO), which are crucial for high-technology and strategic applications.

Geographic Distribution: These valuable deposits are spread across Odisha, Kerala, Andhra Pradesh, Tamil Nadu, West Bengal, Gujarat, Maharashtra, and Jharkhand. They are primarily found in:

Coastal beach sands
Teri/red sands
Inland alluvium

Major Policy Measures to Strengthen the Rare Earth Sector

1. Rare Earth Permanent Magnet (REPM) Manufacturing Scheme- With a financial outlay of Rs. 7,280 crore, this scheme aims to develop a fully integrated domestic ecosystem for REPM production. It seeks to create 6,000 MTPA manufacturing capacity, covering the entire value chain—from processing rare-earth oxides to producing finished permanent magnets.

2. National Critical Minerals Mission (NCMM)- The Mission focuses on securing India's long-term requirements of critical minerals, including rare earth elements. It envisions the creation of a resilient, end-to-end supply chain to reduce vulnerabilities and ensure steady availability for strategic and industrial sectors

Source- PIB

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