Circular Economy: Trends, Challenges and Sustainable Management Strategy of Mining Rare Earth Elements in India

Abstract India holds the world’s fifth-largest reserves of Rare Earth Elements (REEs), primarily found in monazite. However, extraction is challenging due to their radioactive and lean nature. India currently has facilities for metal extraction, mining, separation, oxide refining and extraction but lacks industrial scale facilities for manufacturing alloys and magnets. The Indian rare earth sector is expected to generate capital employment and foreign exchange earnings. India is transitioning to a cleaner, greener and more technologically advanced economy, focusing on 17 REEs essential in various applications, such as EV batteries, solar cells, nuclear reactors and high-tech electronics. REEs are crucial minerals with high supply risks, particularly in India, where the government lacks resources for their collection, usage and recycling. Sustainable development aims to counter material criticality by focusing on material efficiency. Solutions for REE supply include deep-sea mining, economic recovery from coal, coal ash and red mud. E-waste management is crucial for the sustainable future of REE, replacing them into secondary alternative sources, with recycling end-of-life components allowing for the conversion of waste into valuable resources. Extended Producer Responsibility (EPR) commitment plays a crucial role in reducing REE use, replacing them with alternative elements and recycling end-of-life components across India. Further, trade relations play a crucial role in demand–supply balance.