India’s Rare Earth Potential Is Vast, But Processing Capabilities Must Improve: World Energy Council Chairman

India holds significant untapped potential in rare earth elements (REEs), but the country must rapidly strengthen its processing capabilities to truly capitalize on this strategic resource, according to the World Energy Council Chairman.

Speaking at an industry event focused on critical minerals and the global energy transition, the Chairman highlighted that India possesses considerable rare earth reserves, placing it among the world’s most resource-rich nations in this segment. However, he noted that the country still lags in processing infrastructure—an essential component for producing high-value materials used in electronics, electric vehicles, renewable energy technologies, and defence applications.

“India has the geological advantage, but the value addition happens during processing,” he said. “Without strong refining and separation capabilities, raw rare earth ores cannot be leveraged effectively for global supply chains.”

The Chairman emphasized that as countries seek to diversify supply sources away from China—currently the dominant player in rare earth processing—India has a unique opportunity to position itself as a reliable alternative. Strengthening domestic processing capabilities would not only reduce import dependence but also boost India’s prospects as a major supplier in the global clean energy ecosystem.

Industry experts at the event echoed these views, underlining the need for policy support, investment in advanced technologies, and partnerships with global players to build a robust rare earths value chain.

With rare earth demand projected to surge due to rapid electrification and renewable energy adoption, India’s ability to scale up processing infrastructure will be crucial for meeting both domestic and global needs.