Government to Establish Rare Earth Corridors in Mineral-Rich States to Reduce Chinese Import Dependency
In a strategic move to secure critical mineral supply chains, the Union Budget 2026 announced the establishment of 'Rare Earth Corridors.' These corridors will be set up in mineral-rich states, including Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. The initiative aims to promote the mining, processing, research, and manufacturing of critical minerals essential for high-tech devices, electric vehicles, and defense applications. Currently, India depends heavily on China, which controls over 60% of global rare earth production and 92% of refining capacity. This move aligns with the goal of achieving self-reliance in strategic sectors.
Key Points
- Rare earth corridors will be established in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
- The initiative targets self-reliance in critical minerals used in electronics, EVs, and defense.
- China currently dominates 92% of the global rare earth refining capacity and 60% of production.
- The corridors will integrate mining, processing, and manufacturing to strengthen domestic supply chains.
Exam Facts
- States involved: Odisha, Kerala, Andhra Pradesh, Tamil Nadu.
- China's global production share: >60%.
- China's refining capacity: 92%.
- Announcement date: Union Budget 2026-27 speech.
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