UPSC Prelims 2026 Q95: Rare Earth Elements and NCMM — Explained

Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct?

1. Modern technological innovations including Artificial Intelligence, robotics and space exploration extensively utilise Rare Earth Elements (REEs).

2. China has the highest share in mining of REEs followed by India.

3. The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector.

4. Rare Earth Elements are a set of 13 metallic elements.

  1. 1 and 3 only
  2. 3 only
  3. 1, 3 and 4
  4. 1, 2 and 4

Answer: (a) 1 and 3 only

Statement-wise explanation

  • 1: correct — Rare earth permanent magnets made of neodymium-iron-boron, often with dysprosium or terbium added, drive the small, powerful motors in robots, drones, electric vehicles and satellite systems. REEs are also used in the electronics, lasers and sensors that AI hardware and data centres depend on. This is why the Government links its rare earth magnet scheme to electronics, defence and other high-technology uses.
  • 2: incorrect — China is the largest miner of REEs, with about 270,000 tonnes of rare-earth oxide in 2024 out of a world total of about 390,000 tonnes (USGS Mineral Commodity Summaries 2025). The United States is second at about 45,000 tonnes, then Myanmar at about 31,000 tonnes. India mined only about 2,900 tonnes. India is large in reserves, at about 6.9 million tonnes, but not in mining output.
  • 3: correct — The Union Cabinet approved the National Critical Mineral Mission on 29 January 2025. Its total outlay is ₹34,300 crore: ₹16,300 crore from the Government and an expected ₹18,000 crore investment by PSUs and others. It runs for seven years, from 2024-25 to 2030-31. Its aim is a secure domestic value chain for critical minerals, from exploration to processing and recycling, which is self-reliance in the sector.
  • 4: incorrect — Rare earth elements are a set of 17 metallic elements, not 13. They are the 15 lanthanides (lanthanum to lutetium) plus scandium and yttrium. Scandium and yttrium are counted because they behave chemically like the lanthanides and occur in the same ore deposits.

How to eliminate

Statement 4 is the easiest to settle. 'Seventeen rare earth elements' is standard textbook knowledge, so 13 is wrong. That removes the two options that include statement 4 and leaves '1 and 3 only' and '3 only'. Statement 3 is in both, so you only need to judge statement 1. Statement 1 is broadly true: REE magnets are in robot motors, drones and satellites, and the word 'extensively' fits current reports on supply chains. Keeping statement 1 gives the answer, and you never have to settle statement 2. If you do look at statement 2, it is a common trap: India ranks high in rare earth reserves but mines very little. The United States, not India, is second to China in mining.

Know more

Rare earth elements (REEs) are 17 metals: the 15 lanthanides plus scandium and yttrium. Despite the name, most are not scarce in the Earth's crust. They are 'rare' because they seldom occur in rich, easy-to-mine deposits, and separating them from each other is hard and polluting.

Group Examples Key uses
Light REEs Lanthanum, cerium, neodymium, praseodymium Permanent magnets (NdFeB), catalysts, glass polishing
Heavy REEs Dysprosium, terbium, yttrium High-temperature magnets, lasers, phosphors, defence electronics

Where the leverage lies. China mines about 70% of the world's REEs (USGS 2025), and its share of refining and magnet-making is higher still. This is why its export controls hit global industry so hard.

India's position.

  • Rare earth resources are mainly in monazite beach sands of Kerala, Tamil Nadu, Odisha and Andhra Pradesh. About 13.15 million tonnes of monazite hold about 7.23 million tonnes of rare-earth oxide.
  • Monazite contains thorium, so it is radioactive. This is why IREL (India) Ltd., under the Department of Atomic Energy, handles beach-sand REEs.
  • USGS puts India's reserves at about 6.9 million tonnes, third after China and Brazil. Yet India mines only about 2,900 tonnes a year.

Critical minerals are minerals that the economy, clean energy and defence depend on, and whose supply is at risk. REEs are one group within them. The National Critical Mineral Mission (approved January 2025, ₹34,300 crore, 2024-25 to 2030-31) covers:

  • exploration, including offshore
  • auctions of mineral blocks
  • faster approvals
  • a national stockpile
  • processing parks
  • recycling
  • buying mineral assets abroad
  • a Centre of Excellence on Critical Minerals

In the news

China tightened export controls on rare earths and magnets in 2025, and supply chains became a strategic issue worldwide. India responded with the National Critical Mineral Mission (January 2025), a ₹7,280 crore scheme for rare earth permanent magnets (November 2025), and rare earth corridors announced in the Union Budget 2026-27.

NCERT Concepts to Revise

  • Rare earth elements: Statement 4 tests how many elements make up the rare earth group and which ones are included.
  • National Critical Mineral Mission: Statement 3 turns on when the National Critical Mineral Mission was approved and what it aims to do.
  • Critical minerals: The question pairs REEs with critical minerals; knowing the definition shows why REEs fall in this category.
  • China's dominance in critical minerals: Statement 2 tests rankings in rare earth mining, where China's position and the runner-up matter.
  • Monazite: Monazite beach sand is India's main rare earth source, which helps you judge India's real position in REE mining.

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