China’s Monopoly Hit? Massive Rare Earth Find in Indian State Revealed

The global race for rare earth minerals is intensifying, and India has taken a significant step forward. Major deposits of rare earth elements (REEs) have been discovered in Bhati Kheda village, in Balotra district of Rajasthan, offering hope for reducing global dependence on China, which currently controls over 90% of global rare earth supply.

These minerals are vital for manufacturing smartphones, electric vehicles (EVs), wind turbines, defense equipment, and other high-tech systems. The Geological Survey of India (GSI) and the Atomic Minerals Directorate (AMD) have confirmed substantial concentrations of bastnäsite, britholite, and xenotime — key sources of rare earths — in the region. The upcoming mining auction, worth around ₹10 crore, is expected to attract major interest from both public and private players.

Environmental clearance for the area is expected to proceed smoothly, as the site does not fall under any wildlife or eco-sensitive zones. The discovery is particularly timely as India’s current rare earth production accounts for just 1% of global output, despite having the third-largest reserves globally (approx. 6.9 million tonnes).

Rare earth elements — including neodymium, praseodymium, dysprosium, and terbium — are critical to making rare earth magnets, which power PMSM motors in EVs and are used in missile guidance systems, smartphones, and satellites.

To harness this strategic opportunity, the Indian government launched the National Critical Minerals Mission (NCMM) in 2025. The initiative aims to rapidly accelerate exploration, mining, and processing of critical minerals. The GSI has been tasked with 1,200 exploration projects through 2030-31.

The Ministry of Mines has also identified 30 critical minerals, 24 of which have been added to Part D of Schedule I of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). This change gives the Centre exclusive power to auction these mineral blocks.

Additionally, a ₹1,000 crore PLI scheme for domestic production of rare earth magnets is expected to strengthen India's supply chain. Plans for a Centre of Excellence on Critical Minerals (CECM) are also underway to guide innovation and strategy.

India’s push into the rare earth sector could reshape the global supply landscape and reduce its dependency on China — a strategic shift crucial for both energy security and national defense.