The Indian Government is prioritizing the expansion of rare earth elements (REEs) extraction and refining capacity in order to establish a strong supply chain for critical minerals and clean energy products, including nuclear power. In a written response in Rajya Sabha, Minister of State for the Prime Minister’s Office, Jitendra Singh, mentioned the commissioning of an expansion project at the Indian Rare Earths (IREL) Plant in Chatrapur at Ganjam (Odisha) to increase annual mineral production capacity by 2,00,000 tonnes and enhance plant efficiency. Additionally, IREL is continuously incorporating new technologies to increase the production of atomic minerals, including rare earth-bearing minerals, through CAPEX infusion.
The operations of IREL have also had a positive economic impact, as the minerals produced by IREL are used by various locally-operating Micro, Small & Medium Enterprises (MSMEs), thereby contributing to economic growth and employment in the region. Currently, the plant does not face any challenges related to infrastructure, technology, or market demand. IREL has plants located in Chavara deposit in Kerala, Manavalakurichi in Tamil Nadu, and at Chatrapur in Odisha.
In FY24, IREL reported a record mineral production of 5.31 lakh tonnes, marking a 3.3% year-on-year growth. This milestone production level demonstrated the company’s commitment to expanding its operations. Last month, the US Bureau of Industry and Security (BIS) lifted restrictions on IREL, Bhabha Atomic Research Centre (BARC), and Indira Gandhi Atomic Research Centre (IGCAR). This move is expected to facilitate closer cooperation between the US and India in securing more resilient critical minerals and clean energy supply chains. The removal of these restrictions will also enhance advanced energy cooperation, joint research and development, and science and technology cooperation between the two countries towards shared energy security objectives.
