Knowledge Booster: Rare Earth Elements (REEs) and National Critical Minerals Mission (NCMM)

Subject: Geography, Economy, Science & Technology, Government Schemes
Relevance: Critical minerals are vital for economic development and national security.

Why in the News?

• Strategic importance of rare earth minerals is highlighted by discussions between Ukraine, U.S., and renewed interest in Ukraine’s rare earth mineral deposits.

• The government approved the ₹16,300-crore National Critical Minerals Mission (NCMM) on January 29, 2025.

Rare Earth Elements (REEs)

1. Definition:

   • A set of 17 chemical elements in the periodic table.

   • Includes the 15 lanthanides (cerium, dysprosium, erbium, europium, gadolinium, holmium, lanthanum, lutetium, neodymium, praseodymium, promethium, samarium, terbium, thulium, ytterbium), plus scandium, and yttrium.

   • Classified as Light REEs (LREE) and Heavy REEs (HREE).

2. Uses:

   • Essential components in over 200 consumer products, including:

     • Mobile phones

     • Computer hard drives

     • Electric and hybrid vehicles

     • Semiconductors

     • Flat-screen TVs and monitors

     • High-end electronics

   • Used in space shuttle components, jet engine turbines, and drones.

   • Scandium: Televisions and fluorescent lamps.

   • Yttrium: Drugs to treat rheumatoid arthritis and cancer.

3. Availability in India:

   • Available: Lanthanum, Cerium, Neodymium, Praseodymium, and Samarium.

   • Not available in extractable quantities: Dysprosium, Terbium, and Europium (HREEs).

   • India depends on countries like China for HREEs.

National Critical Minerals Mission (NCMM)

1. Approval and Budget:

   • Approved on January 29, 2025, with a budget of ₹16,300 crore.

2. Objectives:

   • Promote the exploration of critical minerals within the country and at offshore locations.

   • Encompass all stages of the value chain: mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.

   • Create a fast-track regulatory approval process for critical mineral mining projects.

3. Financial Allocation:

   • ₹5,600 crore to the National Mineral Exploration Trust (NMET) for risk coverage for foreign sourcing and exploration activities outside India.

   • ₹1,000 crore from the Anusandhan National Research Foundation (ANRF) and other R&D schemes.

   • ₹2,600 crore in budgetary support.

4. Other Plans:

   • Creation of four mineral processing parks.

   • Separate guidelines for recycling of critical minerals.

   • Critical Minerals Partnership Agreements with resource-rich countries.

   • Integrating chapters on critical minerals in bilateral trade agreements.

Critical Minerals

1. Definition:

   • Essential for economic development and national security.

   • Lack of availability or concentration of extraction/processing in a few locations can lead to supply chain vulnerabilities.

2. Examples:

   • Lithium

   • Graphite

   • Cobalt

   • Titanium

   • Rare Earth Elements

3. Critical Minerals Approved by Centre:

   • In 2023, the Centre identified 30 critical minerals essential for the country’s economic development and national security.

Ukraine

1. Critical Raw Material Reserves:

   • Holds approximately 5% of the world’s critical raw materials.

2. Key Resources:

   • Graphite: 19 million tonnes of proven reserves (used in electric vehicle batteries).

   • Lithium: One-third of all of Europe’s lithium deposits.

   • Titanium: 7% of world’s titanium production (used in manufacturing airplanes and power stations).