Can Andhra’s rare earth corridor fuel India’s clean-energy dreams?
Along Andhra Pradesh's extensive coastline, stretching 974 km, lies a treasure trove that could be pivotal in shaping India's clean energy future: rare earth mineral reserves. These reserves, found within the heavy sands from Srikakulam to Nellore, hold the potential to revolutionize the nation's clean energy, defense, and semiconductor sectors.
The sands are rich in monazite, a primary source of rare earth elements (REEs) and thorium, along with other valuable minerals like ilmenite, rutile, zircon, garnet, and sillimanite. What sets Andhra's reserves apart is the high concentration of rare earth oxides in its monazite, ranging from 55% to 60%, surpassing global benchmarks. Additionally, the monazite contains 8-10% thorium, a potential fuel for India's next-generation nuclear reactors.
The deposits contain a range of light REEs, including lanthanum, cerium, praseodymium, neodymium, samarium, europium, and gadolinium. These elements are crucial for manufacturing permanent magnets used in electric vehicles, wind turbines, missile guidance systems, satellite technology, fiber optics, superconductors, and advanced medical diagnostics. The mineral-rich belt forms a continuous corridor with promising deposits identified at Bhimunipatnam, Kalingapatnam, Kakinada, Narsapur, Machilipatnam, Chirala, Vodarevu, Ramayapatnam, and Dugarajapatnam.
India's total deposits are estimated to be over 300 million tonnes of heavy mineral sands, with 12-15 million tonnes of monazite, potentially meeting 40-50% of the country's rare earth requirements for decades. Andhra Pradesh is estimated to hold 30-35% of these reserves. Recent discoveries in Anantapur district have also revealed large deposits of 15 rare earth elements. These include allanite, ceriate, thorite, columbite, tantalite, apatite, zircon, monazite, pyrochlore euxenite and fluorite.
The global shift towards clean energy is driving a strategic competition for the minerals that power modern technology. Rare earth elements are now considered the "new oil" of the 21st century, essential for various applications, including electric vehicles, wind turbines, and defense systems. India holds approximately 6% of the world's rare earth reserves and is emerging as a viable alternative source in this expanding market. The National Critical Mineral Mission 2025 prioritizes the exploration, mining, and processing of these critical resources to enhance domestic production.
To support the increasing demand for REEs, Andhra Pradesh is also developing green energy corridors to integrate renewable energy projects into the central grid. A proposed ₹28,436-crore green energy corridor aims to facilitate the evacuation of 11,000 MW of power from renewable energy projects and 7,000 MW from pumped storage projects. The Central Electricity Regulatory Commission (CERC) has approved a green energy corridor project worth ₹21,800 crore, involving the establishment of approximately 350 km of transmission lines from Anantapur to Ramayapatnam.
India's rare earth element (REE) market is currently valued at USD 9.03 billion in 2024 and is projected to grow at a CAGR of approximately 9% from 2024 to 2030. This growth is driven by increasing demand for REEs in electronics, electric vehicles, renewable energy, and defense applications. Government initiatives, such as incentives for domestic magnet production and production-linked schemes, are also contributing to market growth.
To fully leverage its rare earth potential, India needs to accelerate domestic extraction and processing. Strategic partnerships with countries possessing large REE reserves could also be beneficial. By developing its rare earth corridor in Andhra Pradesh and implementing supportive policies, India can reduce its import dependence, secure its supply chain, and emerge as a key player in the global clean energy revolution.
