Rare earths from India: what is realistic for buyers in 2026

Since China tightened controls on rare earth exports, buyers around the world have been looking for other sources. India has significant rare earth deposits, mainly in coastal mineral sands, and is building a magnet industry. But it is important to be clear about what India can and cannot supply today.

Who controls supply

Rare earth mining and processing in India is dominated by IREL (India) Limited, a government company under the Department of Atomic Energy. IREL is India's only producer of neodymium–praseodymium (NdPr) oxide, the key input for permanent magnets.

In 2025, India moved to keep this material at home. IREL suspended a long running arrangement to supply rare earths to Japan, so that domestic industry would have first call on supply.

India's magnet programme

• In November 2025 the Union Cabinet approved a ₹7,280 crore scheme to build capacity for 6,000 tonnes a year of sintered rare earth permanent magnets.
• On 13 August 2026 the Ministry of Heavy Industries opened 20 technical bids for the scheme's five beneficiary slots. Applicants included Larsen & Toubro and Coal India.
• Analysts expect the first Indian sintered magnets around 2028 at the earliest.
• IREL cannot supply enough oxide for the full 6,000 tonnes, so the scheme expects producers to import part of their raw material.

India currently imports most of its rare earth magnets, almost all from China.

What this means for buyers

• India is not a source of bulk rare earth oxides or magnets for export today. Supply is state controlled and prioritised for domestic use.
• Over the next few years, India is more likely to become a partner for magnets and finished components than a raw material exporter.
• Be cautious of anyone offering large volumes of Indian rare earths for export now. Ask for the licensing and the source.

For other minerals and industrial raw materials, we work only through approved and licensed suppliers. Talk to our team about your requirements.

Sources

• The Core, Why India's plan for China free rare earth magnets leaves a raw material gap
• Geopolitical Monitor, India's rare earth magnet push
• Observer Research Foundation, India's rare earth vulnerability
• The Economy, India's rare earth push confronts a triple barrier (August 2026)

This article is general information, not legal, tax or customs advice. Trade rules change often, so confirm the position for your product with your customs broker before you ship.