New Delhi (ABC Live): India is often ranked among the world’s leaders in rare earth element (REE) resources. The country’s geological surveys show over 7.23 million tonnes of in-situ REE oxide in placer and hard rock deposits. Yet, India lags far behind countries like China and Australia in technology for REE exploration and processing. This research article explores why India’s REE exploration technology is not keeping pace, despite its vast potential.

The Resource-Technology Paradox

India’s rare earth resources are massive on paper. However, its share in global REE processing is less than 1%. By contrast, China processes over 85% of the world’s rare earths.

India exported only 18 tonnes of REE from 2015 to 2025, reflecting its limited presence in the global value chain. The lack of advanced technology for REE exploration is a major bottleneck.

Main Reasons for India’s Lag in REE Exploration Technology

1. Historical Regulatory Barriers

For decades, India’s policies restricted critical minerals like lithium and titanium as “atomic minerals.” Only a few government agencies could explore these resources. Private sector entry and technology partnerships were limited until the Mines and Minerals (Development and Regulation) Act (MMDR Act) was amended in 2023. (Read the Act – Indian Ministry of Mines)

2. Underinvestment in Advanced R&D

Global leaders use cutting-edge tools like hyperspectral imaging, AI data analytics, and deep drilling for REE exploration. In India, most surveys still rely on traditional methods. Investment in modern REE exploration technology has been low.

3. Limited Human Resource Specialization

India’s universities produce many STEM graduates. However, few specialize in REE exploration technology. Courses on AI in geology, digital geoscience, and advanced mineral processing are rare.

4. Fragmented Institutions and Weak Industry Links

India’s REE sector is split among several government agencies. There is little collaboration between academia, industry, and startups. This slows down the adoption of new technologies and knowledge sharing.

5. Dependence on Imported Technology

India imports much of its advanced exploration equipment. There has been little push to develop domestic tools and software for REE exploration.

6. Environmental and Social Challenges

Most REE deposits in India are found in environmentally sensitive regions. Gaining clearance for new technology trials and mining projects is difficult and time-consuming.

How Other Countries Lead in REE Exploration Technology

China leads due to massive state-backed R&D, workforce training, and integration from exploration to processing. Australia uses university-industry-government partnerships, technology incubators, and fast adoption of digital geoscience.

Is India Catching Up? Recent Policy Changes

The 2023 MMDR Act amendment and the National Critical Mineral Mission (NCMM) have opened the door for private exploration and R&D. Key steps for India to catch up include:

• Investing in large-scale REE exploration research

• Setting up Centres of Excellence for critical mineral technology

• Partnering internationally for training and R&D

• Modernizing university courses and upskilling the workforce

• Supporting REE-focused startups and MSMEs

Conclusion: From Paper Potential to Real-World Leadership

India’s challenge is not a lack of resources or talent, but decades of restrictive policies, low investment, and limited industry-academic links. With recent reforms, India has a unique opportunity to bridge the gap. Focusing on technology, skill development, and innovation can help India realize its ambition to become a global leader in REE exploration and processing.

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