Indian conglomerates move to reduce dependence on China for rare earth supplies

Thursday 11 June 2026 - 09:57

Major Indian industrial groups, including Reliance Industries, Vedanta, and the Adani Group, are reportedly showing strong interest in developing rare earth processing facilities in the southern state of Andhra Pradesh, as India seeks to reduce its dependence on China for critical mineral supplies.

According to sources familiar with the discussions, around ten companies have expressed interest in participating in projects aimed at extracting and processing rare earth minerals from the region’s significant reserves. The initiatives are part of a broader national strategy to strengthen domestic supply chains for strategically important resources.

Andhra Pradesh is estimated to hold 211 million metric tons of beach sand mineral resources, including rare earth elements, across 16 identified coastal deposits. Overall, India’s rare earth reserves are estimated at nearly 483 million tons, according to the Geological Survey of India.

The state government is reportedly planning to develop multiple industrial clusters focused on titanium and rare earth processing, with ambitions to attract investments worth approximately 500 billion rupees (about $5.2 billion) over the next decade.

The move comes as New Delhi intensifies efforts to build a self-reliant rare earth ecosystem, including mining, refining, and the production of permanent magnets used in electric vehicles, electronics, and renewable energy technologies.

Rare earth materials are essential for modern industries but are currently dominated by China, which controls a significant share of global processing capacity. India’s push is seen as part of a wider global trend to diversify supply chains for critical minerals.

Industry observers note that the participation of large conglomerates such as Reliance, Vedanta, and Adani signals growing private-sector interest in strategic resource development, which has traditionally been dominated by state-owned enterprises.

If successful, the initiative could significantly reshape India’s position in the global critical minerals market and reduce vulnerabilities in high-tech and clean energy supply chains.