Abhishek Bhatia: ‘India’s rare earth elements strategy should align with global shifts, reduce dependency on big players like China’

India’s rare earth elements strategy should align with global supply chain shifts and geopolitical pressures, aiming to reduce dependency on dominant players like China, said Abhishek Bhatia, Managing Director & Partner at Boston Consulting Group (BGC).

The country’s rare earth elements market was set to grow steadily, driven mainly by the rising demand for magnets used in green technologies, he said, while elaborating on a topic ‘Critical minerals – Global Scenario and Strategy for India’, at the Critical Mineral Summit organised by Foundation of Science Innovation and Development at Indian Institute of Science here on Monday.

The rare earth elements market is expected to grow at over 6% CAGR until 2040, with magnet applications growing even faster at 8 to 9% CAGR.

According to him, magnets account for just 35% of rare earth element volume but generate over 80% of total industry value, highlighting their economic importance. “This growth is fuelled by demand from electric vehicles, offshore wind power, robotics, and consumer electronics, all relying on permanent magnets,” he said.

Mr. Bhatia also emphasised the critical role of magnets in the energy transition and the necessity to focus on this segment for future competitiveness.

Commenting on the strategic importance of rare earth elements in industrial ecosystems, he said building a robust ecosystem for critical minerals was essential to support India’s industrial and energy transition goals.

“India is prioritising the development of its mining and manufacturing capabilities in critical minerals, with a focus on leveraging academic and technological expertise,’‘ he added.