Highlights

• Geological Survey of India conducting advanced-stage rare earth mineral exploration in West Bengal and Assam
• India expanding rare earth exploration to support e-mobility, defense autonomy, and electronics manufacturing
• Potential opportunity for U.S. and allied investors to diversify rare earth supply chains and challenge China's processing dominance

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In a strategic step toward mineral self-sufficiency, the Geological Survey of India (GSI) (opens in a new tab) announced that it is conducting advanced-stage (G2-level) rare earth mineral exploration in West Bengal’s Purulia district (opens in a new tab) and Karbi Anglong in Assam (opens in a new tab). The goal: auction-ready rare earth blocks within 12 months, with findings submitted to both state and central mining authorities.

GSI Director General Asit Saha (opens in a new tab) confirmed the efforts at the 3rd Minerals and Mining Conclave hosted by ASSOCHAM (opens in a new tab). While the exact rare earth elements (REEs) remain unspecified, Saha noted that a “basket of 14–17 rare earth minerals” is expected. Such mixed-mineral deposits typically require technically advanced, multi-stage separation, which could slow down stream processing unless specialized capacity is developed.

Saha also referenced promising vanadium discoveries in the lower Himalayan belt—another critical mineral with growing demand in battery and steel alloy production.

What It Means for India—and the West

India is now actively expanding rare earth exploration beyond its traditional southern sites (Andhra Pradesh, Tamil Nadu) into the mineral-rich eastern corridor, reflecting a broader pivot to e-mobility, defense autonomy, and electronics manufacturing. With Purulia’s proximity to metallurgical industries in eastern India, this new front could offer logistical and cost advantages.

However, the technical complexity of mixed REE deposits and India’s lack of large-scale commercial separation infrastructure remain major hurdles. Unlike China, which commands over 90% of global rare earth processing, India has yet to scale its refining or magnet production capabilities.

For U.S. and allied investors, India’s momentum presents a dual opportunity and warning:

• Opportunity: India’s auctions may open doors for U.S. and Japanese firms seeking upstream diversification. With supportive trade ties and Quad-aligned industrial policy, partnership potential exists, but it will depend on transparency and regulatory predictability.
• Warning: The West must act swiftly. India is demonstrating ambition, and if it secures Chinese-backed processing deals, it could replicate the same dependency the U.S. is working to escape.

As global REE demand intensifies, the race isn’t just for the mine—it’s for end-to-end value chain control. Purulia may soon matter far beyond India.

Source: The Hindu, July 11, 2025 (opens in a new tab)

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