VISAKHAPATNAM: Andhra Pradesh holds nearly 30% of India’s monazite reserves and is expected to play a key role in the country’s rare earth minerals sector, according to a report released by B2K Analytics.
The report stated that India possesses around 8% of global rare earth element (REE) reserves, making it the third-largest holder globally.
However, the country continues to depend significantly on imports, particularly from China, for rare earth materials and related products.
According to the Atomic Minerals Directorate for Exploration and Research, India has 13.15 million tonnes of monazite containing about 7.23 million tonnes of rare earth oxides.
Monazite deposits are found in the coastal regions of Andhra Pradesh, Odisha, Kerala and Tamil Nadu. Among these States, Andhra Pradesh accounts for nearly 3.8 million tonnes of monazite reserves, or about 30% of the national stock.
The mineral contains light rare earth elements such as cerium, lanthanum and neodymium, which are used in sectors including electronics, semiconductors, renewable energy and defence manufacturing.
India imports 60-80 % of its rare earth needs
The report noted that the Andhra Pradesh government is planning investments of over Rs 50,000 crore during the next decade to support mining, processing, research and manufacturing related to rare earth elements and magnets.
The Union Government has also announced plans to support dedicated rare earth corridors in Andhra Pradesh and other mineral-rich coastal States. A policy on the sector is expected to be notified by June 2026.
The report pointed out that India currently lacks adequate downstream processing and manufacturing capacity, leading to continued import dependence.
Between 2022 and 2025, India imported 60-80% of its rare earth requirements by value and 85-90% by quantity from China.
It further stated that monazite contains thorium, a radioactive element regulated under the Atomic Energy Act.
As a result, mining and processing activities remain largely restricted to State-run IREL (India) Limited, limiting private sector participation.
India’s imports of mineral substances, including monazite, increased from $7 million in 2015 to $86 million in 2024, while exports rose from $7 million to $31 million during the same period.
The report also noted that demand for rare earth permanent magnets is expected to increase due to growth in electric vehicles, renewable energy, electronics, defence and other sectors in the country.