India is significantly ramping up its efforts to secure a stable supply of rare earth elements, vital components for modern technology, by broadening its global search. A key focus of this strategy involves state-owned Indian Rare Earths Ltd (IREL) actively examining Russia's massive Tomtor deposit, one of the world's largest undeveloped rare earth reserves.
This strategic push is designed to lessen India's heavy dependence on China, which currently dominates the global rare earth production and processing landscape. Rare earth elements are indispensable for manufacturing high-strength permanent magnets used in electric vehicles, wind turbines, and advanced defense systems.
Assessing Russia's Tomtor Project
IREL's current engagement with the Tomtor project, located in Yakutia, eastern Siberia, involves a detailed study of its mineral composition. This preliminary assessment aims to understand the quality and commercial viability of the resources before India considers any deeper involvement. However, potential cooperation with Russia could face complications due to existing Western sanctions targeting Moscow's energy sector.
India's Strategic Imperative and Domestic Ambitions
Despite possessing the world's third-largest rare earth reserves, estimated at 7.23 million metric tonnes, India currently lacks commercial-scale facilities for refining and separating these elements to high purity levels. The country also does not produce rare earth magnets domestically. Recognizing this gap, New Delhi approved a 73 billion rupee (approximately $770 million) incentive program in November to foster a domestic rare earth magnet industry.
IREL is not only focused on Russia but is also exploring mining opportunities in Argentina, Australia, and Malawi. Additionally, the company is in discussions with Japanese and South Korean firms to establish domestic rare earth magnet production, with a target timeline between 2029 and 2030.
China's Continued Dominance
While India and other nations seek to diversify their supply chains, China maintains its significant control over the global rare earth market. Data from the General Administration of Customs of China indicates that the country's exports of rare earth ore, metals, and compounds totaled 25,378 tonnes from January to May 2026. While the volume saw a modest increase of 2.2% year-on-year, the export value surged by 44.9% to $243.63 million, reflecting robust global demand and stronger prices.
China's continued dominance in refining and processing these critical materials underscores the urgency for countries like India to build greater self-reliance and secure diversified sources for these strategically important minerals.