Assessing the Feasibility and Socio-Environmental Risks of Scaling Rare Earth Oxide (REO) Extraction from Monazite and Lateritic Deposits in India for Clean-Tech Manufacturing - A Secondary Data - Based Academic Analysis

Abstract

Rare Earth Elements (REEs) have emerged as indispensable minerals for the global transition to advanced technologies such as electric vehicles, renewable energy systems, defence electronics, aerospace components, and digital communication infrastructure. With China currently dominating more than two-thirds of global rare-earth mining and an even larger proportion of separation and processing capacity, supply chain vulnerabilities have become a critical strategic concern for nations dependent on technology imports. India possesses significant geological potential in the form of monazite-bearing coastal deposits and lateritic inland resources, yet domestic production remains limited due to environmental challenges, outdated processing infrastructure, and stringent regulatory restrictions. This research paper evaluates the technical and economic feasibility of scaling Rare Earth Oxide (REO) extraction in India and investigates associated socio-environmental risks. Using a multi-method framework integrating literature review, cost-model parameters, risk screening, and site-based case analysis, the study explores opportunities for domestic capacity building aligned with sustainability. Findings indicate strong potential for India to establish modular rare-earth extraction and processing infrastructure capable of supporting downstream industries such as permanent magnet manufacturing and EV production. However, responsible expansion requires transparent governance, advanced waste-management systems, community engagement, and strategic policy planning. The paper concludes by proposing a roadmap for sustainable development to reduce import dependency and strengthen India’s competitive position in global clean-technology supply chains.

Introduction

Rare Earth Elements (REEs) are a group of 17 metals essential to modern technologies such as electric vehicles, wind turbines, defence systems, semiconductors, and medical imaging. Although widely dispersed in the Earth’s crust, economically extractable deposits are limited and difficult to process. As global demand for clean energy and digital technologies increases, the need for REEs—especially Nd, Pr, Dy, Tb, Y, and La—has risen sharply.

Global Context

China currently dominates the entire REE value chain, including mining, processing, and magnet manufacturing. This concentration has created geopolitical vulnerabilities, price instability, and supply-chain risks for other countries. As a result, nations like the US, Japan, South Korea, Australia, and EU members are investing in new mines, alternative supply chains, and recycling technologies.

India’s Position

India has significant REE resources, mainly monazite-bearing beach sands along the coasts of Odisha, Kerala, Tamil Nadu, and Andhra Pradesh, and inland lateritic deposits in states like Jharkhand, Chhattisgarh, Rajasthan, and Karnataka. Despite its geological wealth, India’s production remains low due to:

• Limited processing infrastructure

• Regulatory challenges involving thorium and uranium

• Strict mining and coastal regulations

• Underutilised state-run facilities (e.g., IREL)

Yet India’s growing industrial needs—EVs, electronics, defence, renewable energy—require a reliable REE supply.

Technical and Environmental Challenges

REE processing involves mining, beneficiation, chemical cracking, and complex multi-stage separation (mainly solvent extraction). These processes:

• Consume large quantities of acids, water, and energy

• Produce hazardous and radioactive wastes

• Pose risks of groundwater contamination, ecosystem damage, and radiation exposure

Global case studies (China, Malaysia, Myanmar) show significant environmental and social harms when regulation is weak.

Literature Insights and Research Gaps

Existing research stresses the strategic importance of REEs, China’s dominance, and the need for supply diversification. Key gaps for India include:

• Limited site-specific environmental and hydrogeological studies

• Lack of Indianised techno-economic models

• Insufficient research on social impacts in coastal and tribal regions

• Few integrated studies linking environmental risk, economics, and downstream industries

Case Study Comparison: Coastal vs. Inland Sites

Two representative site types illustrate India's choices:

Site A – Coastal Monazite Zone

• High-grade ore with strong economic potential

• Very high environmental sensitivity (coastal ecosystems, CRZ rules)

• Dense population dependent on tourism and fishing

• High radiological risk due to thorium in monazite

• Strong logistics but severe social and regulatory hurdles

Site B – Inland Lateritic Zone

• Moderate grades but less radiation risk

• Lower population density, but tribal and agrarian communities require careful engagement

• Manageable environmental risks (mainly groundwater and soil impacts)

• Infrastructure development required

Conclusion: Inland lateritic sites may be more viable for early pilot plants due to lower radiological and social risks.

Technical and Economic Assessment

Economic viability requires:

• High recovery efficiency

• Reagent recycling

• Modular (phased) processing facilities

• Strong downstream magnet-manufacturing integration

Sensitivity analysis shows ore grade and process efficiency are the biggest cost drivers.

Policy Recommendations

A sustainable Indian REE ecosystem requires:

1. Strong Regulation

• Unified national REE regulatory framework

• Mandatory environmental and radiation audits

• Strict monazite/thorium handling rules

• Reinforced CRZ protections

2. R&D and Innovation

• Establish a National Rare Earth Research Centre

• Promote university–industry–government collaboration

• Develop green solvents, ionic liquids, and recycling technologies

3. Pilot Plants Before Commercial Projects

• Begin in inland lateritic zones

• Publish transparent performance data

• Use pilot results to refine regulations

4. Sustainable Waste Management

• Zero-liquid-discharge systems

• Engineered tailings storage facilities

• Thorium residue vaults with long-term monitoring

• Community-involved environmental oversight

5. Downstream Manufacturing Incentives

• PLI schemes for magnets and alloys

• Domestic offtake obligations for EV/wind industries

• Strategic stockpiles of critical oxides

• Restrict raw monazite export and promote value addition

Long-Term Roadmap (2025–2040)

Phase 1 (2025–28): Pilot plants, regulatory framework, R&D centre
Phase 2 (2028–34): Scale-up, industrial clusters, magnet manufacturing
Phase 3 (2034–40): National self-sufficiency, selective exports, recycling ecosystem

Conclusion

This study demonstrates that rare-earth development in India is both technically feasible and strategically essential, provided that expansion follows a scientifically informed, environmentally responsible, and socially inclusive approach. The country’s vast monazite and lateritic resources offer a pathway toward reducing import dependency, strengthening national defence capabilities, enabling EV and renewable-energy manufacturing, and positioning India competitively in global critical-mineral supply chains. However, rare-earth extraction is not solely a mining challenge—it is fundamentally a chemistry, waste-management, and governance challenge. The environmental risks associated with thorium-bearing residues, acidic effluents, and tailings require world-class safeguards. Social acceptance depends on transparent communication, community participation, livelihood security, and benefit-sharing. The comparative case study of coastal and inland zones illustrates that geological potential alone cannot determine project viability—local ecological sensitivity and community dynamics are decisive. With targeted R&D innovation, modular pilot demonstrations, sustainable waste-handling standards, and well-designed industrial incentives, India can develop a responsible and globally competitive rare-earth ecosystem.

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Copyright

Copyright © 2025 Kethan Ashish Bhandari. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.