Initiatives for Rare Earth Elements (REE) and Critical Minerals
Budget Announcement on Rare Earth Corridors
The government has announced the establishment of dedicated rare earth corridors in four states: Tamil Nadu, Kerala, Odisha, and Andhra Pradesh.
- This initiative aims to promote the mining, processing, research, and manufacturing of REE and critical minerals.
- Objectives include reducing dependence on China, driving economic growth through clean industrial manufacturing, decarbonizing the economy, and creating jobs.
Recovery and Recycling of REE
Efforts to boost the supply of REE and critical minerals include the recovery and recycling from e-waste, mine tailings, and industrial waste.
- Estimates indicate e-waste alone could generate 1,300 tonnes of REE.
- Last year’s ₹1,500 crore scheme aimed at building capacity for extracting and producing critical minerals from waste streams was a starting point but is inadequate.
Regulatory Framework
A robust regulatory framework is necessary to support these initiatives.
- E-waste management rules should classify critical minerals as high-value materials.
- Extended Producer Responsibility (EPR) rules must incentivize recycling and recovery.
- The informal recycling sector should be formalized through capacity building, technology transfer, know-how, financial support, and incentives for transition.
Supply and Demand Matching Mechanism
A mechanism to match supply with demand is essential for accelerating domestic consumption.
- Includes establishing a national stockpile.
- Mandates for using recycled critical minerals will strengthen the ecosystem.
Overall Impact
- This approach will enhance self-reliance, competitiveness, and resource efficiency.
- It will generate jobs, improve resource efficiency, and reduce the economy’s waste and emissions footprint.
- Importantly, it will create secure, well-supported jobs with benefits, providing workers with essential social safety nets for a modern, resilient economy.
