India Accelerates Rare Earth and Lithium Exploration; Domestic Production Capacity of Rare Earth Permanent Magnet to Reach 5,000 Tonnes by 2030: Dr. Jitendra Singh in Lok Sabha

1. At a Glance

On 25 March 2026, MoS (IC) Science & Tech, Earth Sciences and DoAE Dr. Jitendra Singh told Lok Sabha that India will scale rare earth permanent magnet (REPM) capacity to 5,000 tonnes by 2030 and accelerate lithium exploration [S1].
Critical for EVs, renewables, electronics, defence, aerospace, space and AI energy systems [S1]; tied to the SHANTI Act, 2025 liberalisation and private-sector entry into atomic minerals [S1][S2].
UPSC angle: intersects critical minerals strategy, GS-III economy/S&T, MMDR Amendment Act 2023, KABIL, IREL and Atomic Energy Act 1962.

2. Why in the News

25 Mar 2026 Lok Sabha statement by Dr. Jitendra Singh announcing the 5,000 t REPM by 2030 target and acceleration of lithium/REE exploration [S1].
Follows SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Bill, 2025, which received Presidential assent on 21 Dec 2025 [S2].
Union Budget announcement of four Rare Earth Corridors in Odisha, Tamil Nadu, Andhra Pradesh, Kerala [S2].
Scheme to Promote Manufacturing of Sintered REPM approved with ₹7,280 crore outlay; 6,000 MTPA integrated capacity envisaged [S3].

3. Background & Evolution

1950: Indian Rare Earths Ltd (IREL) incorporated; placed under Department of Atomic Energy (DAE) since 1963 [S3].
1962: Atomic Energy Act classifies REEs/thorium-bearing monazite as prescribed substances, reserving them to government entities.
2019: KABIL (Khanij Bidesh India Ltd) — JV of NALCO + HCL + MECL under Ministry of Mines — for overseas acquisition of lithium, cobalt; Argentina partnership [S3].
2023: MMDR Amendment Act delisted 6 atomic minerals (incl. lithium) from atomic list, allowing private/auction mining; Cabinet fixed royalty: Lithium 3%, Niobium 3%, REEs 1% of London Metal Exchange price [S2].
2024: National Critical Mineral Mission (NCMM) launched; 30 critical minerals identified by Ministry of Mines.
2025: SHANTI Act assented (21 Dec 2025) — opens nuclear/atomic-minerals to private sector [S2].
2026: Four REE corridors announced; REPM scheme (₹7,280 cr) operationalised [S2][S3].

4. Core Static Facts

Announcement: Lok Sabha written reply, 25 Mar 2026, by Dr. Jitendra Singh, MoS (IC) DoAE [S1].
REPM target: 5,000 tonnes by 2030 (domestic) [S1]; scheme aims 6,000 MTPA integrated ecosystem from oxide feedstock to final magnet [S3].
Scheme outlay: ₹7,280 crore for Sintered REPM Manufacturing [S3].
Nodal entities: IREL (India) Ltd (DAE) — REE extraction/refining; KABIL (Ministry of Mines) — overseas lithium/cobalt assets [S3].
IREL facilities: Rare Earth Extraction Plant — Odisha (OSCOM, Chatrapur); Rare Earth Refining Unit — Aluva, Kerala; processing capacity 10 lakh tpa [S3].
Rare Earth Corridors (Union Budget): Odisha, Tamil Nadu, Andhra Pradesh, Kerala [S2].
Enabling laws: Atomic Energy Act, 1962; MMDR (Amendment) Act, 2023; SHANTI Act, 2025 (assented 21 Dec 2025) [S2].
End-use sectors flagged: EVs, renewable energy, electronics, defence, aerospace, space, AI energy systems [S1].

5. Multi-Dimensional Analysis

Economic: Reduces import dependence on China (~90% global REE processing); REPM consumption projected to double by 2030 [S3]; backs PLI for EVs, electronics.
Scientific/Technological: REPM (NdFeB, SmCo) essential for EV traction motors, wind turbines, MRI, precision-guided munitions; BARC-developed extraction tech transferred for indigenisation [S3].
Geopolitical/Strategic: China controls >85% REE refining; India aligns with Minerals Security Partnership (MSP), US/Australia/Japan critical minerals dialogues; KABIL's Argentina lithium pact (Catamarca) diversifies supply [S3].
Legal/Constitutional: MMDR 2023 amendment moves 6 atomic minerals from Schedule restrictions; SHANTI Act liberalises Sec. 3/14 of Atomic Energy Act 1962 to admit private sector [S2].
Environmental: REE mining produces radioactive monazite tailings (thorium); requires AERB clearance; tension with coastal ecosystems in Odisha/Kerala sands.
Administrative: Multi-ministry split — DAE (IREL), Mines (GSI, KABIL, NCMM), MoEFCC (clearances), DST/MeitY (downstream) — coordination challenge.

6. Recent Developments (last 12-18 months)

Mar 2026: Lok Sabha 5,000 t REPM by 2030 announcement [S1].
Feb 2026: PIB strategy document on "India's Rare Earth Strategy: Manufacturing, Corridors, Global Integration" [S2].
Dec 2025: SHANTI Act, 2025 assented by President [S2].
2025-26 Union Budget: 4 REE corridors (OD, TN, AP, KL); REPM scheme ₹7,280 cr [S2][S3].
2024: National Critical Mineral Mission launched; GSI lithium exploration in Reasi (J&K) — ~5.9 Mt inferred resource.
2023: Cabinet approved royalty (Li 3%, Nb 3%, REE 1% of LME); MMDR Amendment Act passed.

7. Prelims Hooks

REPM domestic production target: 5,000 tonnes by 2030 [S1].
Scheme outlay for Sintered REPM Manufacturing: ₹7,280 crore [S3].
Integrated capacity envisaged under scheme: 6,000 MTPA [S3].
IREL (India) Ltd functions under Department of Atomic Energy, not Ministry of Mines [S3].
KABIL = JV of NALCO + HCL + MECL under Ministry of Mines.
Royalty (MMDR 2023): Lithium 3%, Niobium 3%, REE 1% of LME price.
Atomic Energy Act: year 1962.
SHANTI Act: assented 21 December 2025 [S2].
Four Rare Earth Corridors: Odisha, Tamil Nadu, Andhra Pradesh, Kerala [S2].
IREL Rare Earth Refining Unit located at Aluva, Kerala; Extraction Plant in Odisha [S3].
KABIL's lithium agreement: Argentina (Catamarca province).
Number of critical minerals notified by Ministry of Mines (2023): 30.
Lithium inferred resource discovered by GSI: Reasi, Jammu & Kashmir (~5.9 Mt).

8. Mains Relevance

GS-III: Resource mobilisation; Indian economy & infrastructure; S&T indigenisation; Energy security.
GS-II: Bilateral/multilateral mineral diplomacy (MSP, Quad).
Probable stems: 1. "Critically examine India's strategy to attain self-reliance in rare earth elements and lithium. What role does the SHANTI Act, 2025 play?" 2. "Discuss the geopolitical implications of China's dominance in rare earth supply chains for India's clean energy transition." 3. "Evaluate the institutional architecture (IREL, KABIL, NCMM) for India's critical minerals security."

9. Related Topics to Study Next

National Critical Mineral Mission (2024) — umbrella policy for 30 minerals.
MMDR Amendment Act, 2023 — opened atomic minerals to auctions.
Minerals Security Partnership (MSP) — 14-country plurilateral led by US.
PLI for ACC battery storage (₹18,100 cr) — downstream lithium demand.
KABIL Argentina lithium deal — overseas asset acquisition model.
Atomic Energy Act, 1962 & AERB — regulatory base for monazite/thorium.
Geological Survey of India (GSI) lithium finds in Reasi, Karnataka.
Deep Ocean Mission — polymetallic nodules (cobalt, nickel, REE).

10. Common Errors / Trap Areas

IREL is under DAE, NOT Ministry of Mines [S3].
KABIL ≠ IREL: KABIL (Mines, overseas assets); IREL (DAE, domestic processing).
SHANTI Act is about nuclear/atomic liberalisation, not specifically rare earths — but enables private REE/lithium mining via atomic-mineral linkage [S2].
5,000 t is REPM target; do not confuse with 6,000 MTPA integrated capacity in scheme [S1][S3].
Lithium royalty is 3% of LME price, not 3% of ad valorem domestic price.
Rare Earth Corridors are four states (OD, TN, AP, KL) — Andhra is in, Telangana is not.

11. Sources

[S1] India Accelerates Rare Earth and Lithium Exploration … 5,000 Tonnes by 2030: Dr. Jitendra Singh in Lok Sabha — https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=2245038&reg=3&lang=2 — (tier: 1)
[S2] India's Rare Earth Strategy: Manufacturing, Corridors, and Global Integration (PIB) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2222413&reg=3&lang=2 — (tier: 1)
[S3] Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (PIB Press Note) — https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=156753&ModuleId=3&reg=3&lang=1 — (tier: 1)