Shares of Gujarat Mineral Development Corporation (GMDC), engaged in mining and extraction of various minerals and metals, rallied 7% in today’s session (February 1), reaching the day's high of ₹618 per share, following the government’s continued efforts to boost rare earth production.
Union Finance Minister Nirmala Sitharaman, in her Union Budget speech, proposed the creation of rare earth corridors in Tamil Nadu, Kerala, Odisha, and Andhra Pradesh, intensifying the country’s push to build domestic capacity and reduce dependence on China.
India is among a growing number of countries racing to capture a greater share of the rare earth magnet supply chain after China, which processes about 90% of global output.
China has a near-monopoly on rare earths, controlling 60% of the world’s mining and more than 90% of processing capacity, according to the International Energy Agency.
Earlier in November 2025, the Union Cabinet approved a ₹7,280-crore incentive program for rare earth magnets. The program aims to address the shortage of magnets and create a production capacity of 6,000 metric tons per annum. Rare earth deposits, called ‘placer deposits’, are found along beaches, and India is among the top three countries with such deposits.
India has shifted its focus to sourcing rare earth magnets locally after China, in April 2025, imposed restrictions on the export of seven key rare earth elements following the US tariff sanctions.
India has one of the world’s largest rare-earth deposits, estimated at about 6.9 million tonnes.
However, the manufacturing of rare-earth magnets is an energy-intensive and toxic-waste-generating value chain. It begins with mining rare-earth oxides, which are processed into alloys and later converted into magnets.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
