Rare Earth Elements (REEs)

Context

• Recently, on the sidelines of the 11th Quad Foreign Ministers’ Meeting (FMM) in New Delhi, India and the United States firmed up a critical framework titled “Securing of supply in the mining and processing of critical minerals and rare earths” to ensure a steady supply of these vital materials.
• This move follows growing concerns over China’s stringent export controls on strategic metals. Parallelly, a separate critical minerals framework was signed among all four Quad nations—India, the U.S., Australia, and Japan—aiming to mobilize approximately $20 billion in government and private-sector support to establish diversified, resilient supply chains and counter global market shortfalls.

1. Core Facts and Chemical Properties

• The 17 Elements: REEs include the 15 Lanthanides (atomic numbers 57 to 71) plus Scandium (21) and Yttrium (39). Scandium and Yttrium are included because they occur in the same ore bodies and share nearly identical chemical properties.
• The Scarcity Myth: These metals are relatively abundant in the Earth’s crust, but they are highly dispersed. They rarely form concentrated, easily mineable veins, making extraction and chemical separation complex and costly.
• Industrial Breakdown:

Category	Key Elements	Main Uses
Light REEs (LREEs)	Lanthanum, Cerium, Neodymium	EV batteries, catalytic converters, glass polishing, magnets.
Heavy REEs (HREEs)	Dysprosium, Terbium, Yttrium	Defense radars, fiber optics, missile guidance, high-heat magnets.

Promethium is the only lanthanide that is entirely radioactive and virtually non-existent in nature.

2. Global and Indian Distribution

• Global Monopoly: China holds nearly 50% of global rare earth reserves, controls over 60% of primary mining, and dominates roughly 92% of mid-stream refining capacity.
• India’s Placer Deposits: India’s primary rare earth source is Monazite, a heavy beach sand mineral found along coastal stretches and inland dunes.
• Geographic Locations: Major monazite reserves lie across the coasts of Odisha (Chhatrapur), Kerala (Chavara), Andhra Pradesh, and Tamil Nadu.
• Hard-Rock Alternatives: Inland carbonatite rock reserves have also been mapped in Gujarat (Amba Dongar) and Rajasthan (Barmer/Sirohi).

3. Downstream Value Chains

• Permanent Magnets (REPMs): Neodymium-Iron-Boron (NdFeB) magnets are the strongest permanent magnets commercially available. They maintain high magnetic performance even under intense physical and thermal stress.
• Green Energy Anchor: These magnets are critical components for electric vehicle (EV) traction motors and direct-drive wind turbines, making REEs essential for decarbonization goals.
• The New Corridors: The designated Rare Earth Corridors cluster coastal mining nodes with processing plants to build an end-to-end domestic supply chain, shifting away from exporting raw sand.

4. Regulatory and Policy Frameworks

• Atomic Energy Act, 1962: Because monazite contains radioactive Thorium, it is classified as a “prescribed substance.” Consequently, mining and processing beach sand minerals remain strictly regulated by state-owned companies like IREL (India) Limited.
• MMDR Amendment Act: Recent updates to the Mines and Minerals Development and Regulation Act removed several critical items from the atomic minerals list, allowing private players to bid on exploration licenses for non-radioactive critical ores.
• National Critical Minerals Mission: This initiative coordinates domestic mining block auctions, streamlines environmental clearances for processing facilities, and supports international joint ventures like KABIL to secure mineral assets abroad.

Consider the following statements regarding Rare Earth Elements (REEs):
STATEMENT I: Monazite sand deposits along the Indian coast are classified as prescribed substances under the Atomic Energy Act due to the presence of radioactive Thorium.

STATEMENT II: India possesses a highly balanced rare earth resource profile, where domestic reserves contain an over-abundance of heavy rare earth elements (HREEs) relative to light rare earth elements (LREEs).
Which one of the following is correct in respect of the above statements? 
(a) Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I
(b) Both Statement I and Statement II are correct and Statement II is not the correct explanation for Statement I
(c) Statement I is correct but Statement II is incorrect
(d) Statement I is incorrect but Statement II is correct 
Solution
Correct Answer: (c)
• STATEMENT I IS CORRECT: Monazite is a primary source of rare earths in India. Because it contains radioactive Thorium and Uranium, it is regulated as a prescribed substance under the Atomic Energy Act of 1962 to manage radiation risks and ensure public safety.
• STATEMENT II IS INCORRECT: India's rare earth reserves are heavily skewed toward Light Rare Earth Elements (LREEs) like Cerium and Neodymium. The country lacks significant domestic reserves of critical Heavy Rare Earth Elements (HREEs) like Dysprosium, leaving its advanced defense and precision tech sectors reliant on international imports.