India’s rare earths production has shown significant variability between 2013 and 2023, fluctuating between 1.5 and 2.75 thousand metric tons. After a period of stability, there was a notable dip in 2016 followed by substantial growth in 2018. This growth was not sustained as the production again reduced in 2019 and 2020. However, 2021 and 2022 saw recovery with modest growth. By 2023, production stood at 2.81 thousand metric tons, a slight increase from the previous year.
Over the past two years, there has been a consistent upward trend, with modest year-on-year increases of around 1.9%. The five-year compound annual growth rate (CAGR) leading up to 2023 was -0.66%, reflecting some volatility in the rare earths market.
Forecasts indicate a steady growth through 2028, with a 5-year CAGR projected at 1.47%, approximating a total growth rate of 7.59% by the end of the forecast period. Production is expected to reach 3.08 thousand metric tons by 2028.
Future trends to watch for:
- Technological advancements in mining and processing that could lead to more efficient production methods.
- Government policies and initiatives aimed at boosting domestic production capacity and reducing dependency on imports.
- Global demand for rare earths, particularly in technology and renewable energy sectors, influencing production levels in India.
