India to produce 500 tonnes of neodymium in FY27: Indian Rare Earths
- IBEF
- November 10, 2025
India is set to sharply boost its rare earth production amid the global supply crunch, with output of neodymium expected to rise ninefold to 500 tonnes by FY27, up from about 200 tonnes projected for FY26, according to Indian Rare Earths Limited (IREL). The state-owned enterprise, under the Department of Atomic Energy, currently mines and processes rare earth elements, which are essential for electric vehicles (EVs), clean energy technologies, defence systems, and electronics. The General Manager and Head of the Rare Earth Division at IREL, Mr. V. Chandrasekar, stated that production of neodymium and praseodymium will double within a year, supported by indigenous engineering advancements. He added that India produced only around 40 tonnes last year when the rare-earth crisis was at its peak.
IREL operates extraction and refining facilities in Odisha and Kerala, producing eight out of 17 rare earths, including neodymium, praseodymium, and dysprosium. India currently holds about 5-6% of the global rare earth business, ranking third in production and sixth in reserves. Strengthening domestic capacity, IREL has also established a Rare-Earth Permanent Magnet (REPM) plant for samarium-cobalt magnets used in defence and atomic energy applications. The expansion aligns with the National Critical Mineral Mission (NCMM), which envisages an expenditure of Rs. 16,300 crore (US$ 1.84 billion) and expected investment of Rs. 18,000 crore (US$ 2.03 billion) between FY25 and FY31 to secure critical mineral supply chains and promote technology localisation across India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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