National Critical Mineral Stockpile: Govt plans 2-month reserve of rare earth elements amid Chinese curbs

India plans to set up a National Critical Mineral Stockpile (NCMS) to ensure the availability of rare earth elements, The Economic Times reported on Monday, citing government officials.

The proposed programme aims to create a two-month reserve of rare earth elements, with participation from private players, according to the report.

The NCMS will complement India’s efforts to boost domestic production of rare earth magnets.

The scope is expected to expand later to include other critical minerals, the paper said.

The plan comes after China, which processes over 90% of global rare earth minerals (REMs), imposed curbs on exports of rare earth magnets.

Rare earth elements, a group of 17 chemically similar materials, are vital for high-tech and clean energy applications due to their unique magnetic and electrical properties. They are used in consumer electronics products, electric vehicles, catalytic converters, batteries, wind turbines, MRI machines, and cancer drugs and among others.

China’s restrictions on rare earth exports remain in place despite signs of easing.

China has reportedly asked India to provide guarantees that heavy rare earth magnets supplied by Chinese firms will not be re-exported to the United States and will be used solely to meet domestic needs before resuming shipments of the critical components.

Indian companies have submitted end-user certificates confirming that the magnets will not be used for the production of weapons of mass destruction.

However, Beijing has reportedly sought additional export control assurances similar to those under the ‘Wassenaar Arrangement’.

Meanwhile, US President Donald Trump has threatened additional tariffs of up to 100% on Chinese imports in response to the new export controls.

India holds an estimated 7.23 million tonnes of rare earth oxide contained in 13.15 million tonnes of monazite, found mainly in coastal and inland deposits across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra, according to the mines ministry.

The ministry has, so far, conducted five tranches of auctions for 55 critical and strategic mineral blocks, awarding 34, and launched a sixth tranche last month.