How Vedanta and JSW Are Tapping Into India’s Rare Earth Boom To Beat China

Indian conglomerates like Vedanta Group, Sajjan Jindal-led JSW Group and EV parts maker Sona BLW Precision Forgings are striving to be a part of the Indian government's plans for rare-earth mineral production. The Indian government has proposed to boost local production of rare-earth magnets to reduce its reliance on China, reported Bloomberg, citing sources.

Rare earth elements like neodymium, praseodymium and dysprosium play a vital role in the production of electric vehicles (EVs) and wind turbine materials. India imports a large amount of these rare-earth elements from China.

India's Plan To Boost Rare Earth Production

The Indian government is planning an incentive program worth as much as Rs 25 billion to encourage private sector participation in the discovery and extraction of rare earth magnets, reported Bloomberg, citing sources.

Conglomerates like Vedanta Group, Sajjan Jindal-led JSW Group and Sona BLW Precision have shown their interest in the incentive program. The policy blueprint is likely to be submitted for cabinet approval, and the final plan may see some changes based on internal consultation. There is no official information available about the proposed plan till now, and GoodReturns couldn't independently verify the news.

China's Dominance

As of now, China holds around 49% of the rare earth elements (REE) sector across the world. According to a CareEdge report, China has firmly established itself as the global powerhouse in the Rare Earth Element (REE) sector, holding 49% of the world's total reserves, mining 69% of REEs, and having a 90% share of REE refining.

China's Strategic Influence Due To REE Dominance

China's dominance in REE segment has helped the country to enhance its influence across the world in terms of diplomacy. History says that China has used the REE trade as one of its tools to exert diplomatic pressure on other nations during tense situations.

"Over the years, China has demonstrated a willingness to adjust its export policies to reflect broader geopolitical and economic priorities. One such move was temporarily cutting off REE exports to Japan during a diplomatic dispute in 2010. It also introduced changes to the Export Control Law in 2020 to introduce curbs covering elements that affect national security. It banned exports of gallium, germanium, and antimony to the U.S. in December 2024," added Care Edge in its report.

India's Rare Earth Potential

India has around 8% of the world's reserves of rare earths but it contributes even less than 1% of global REE mining. The government of India's National Critical Mineral Mission, launched in 2025, is a step to build its self-reliance in the mineral sector.
As of the 2023 Indian Minerals Yearbook, India has recognised nearly 130 deposits, of which the coastal states have the most rare earth deposits, namely Tamil Nadu, Kerala, Andhra Pradesh, and Odisha.

India Considering Cutting REE Exports

In addition to boosting its REE exploration program, India is also considering reducing its exports of the minerals to save rare earths in the home country and expand domestic processing. "While India has the third-largest share of global reserves of REE, it still has a long way to go to emerge as a significant global producer of REE. The Indian government is developing domestic manufacturing capabilities and is considering offering companies a production-based fiscal incentive," added CareEdge in its report.