Rare Earth Elements Discovered in Singrauli: India’s Strategic Turning Point

India has uncovered promising reserves of rare earth elements in the Singrauli coalfields of Madhya Pradesh, a development with the potential to redefine its position in global mineral supply chains. In late July 2025, Coal and Mines Minister G Kishan Reddy informed Parliament that detailed research by Coal India Ltd confirmed concentrations of approximately 250 parts per million (ppm) in coal samples and up to 400 ppm in non-coal strata such as shale and sandstone. These are considered promising levels for rare earths like scandium and yttrium, which are critical to advanced industries.

These rare earth elements are essential for electric vehicle motors, wind turbines, cutting-edge electronics and even defence systems. Currently, India relies heavily on imports especially from China, which dominates global supply. But with China tightening export policies in mid‑2025, India’s leverage has weakened. The Singrauli discovery arrives at exactly the right moment.

What stands out is how these REEs were found not in deep ores but in what was once considered mining waste. The Gondwana sediments coal mine overburden, clay, shale, sandstone and fly ash have shown enrichment levels that suggest they could become secondary mineral sources. If extraction proves economically viable, this approach could transform waste into valuable assets.

To explore this potential, Coal India Ltd is working with leading academic and research institutions, including IIT Hyderabad, IMMT Bhubaneswar, and NFTDC Hyderabad. Together, they are developing methods such as ion-exchange resin processing and physical separation techniques. Their goal: scalable, cost-effective extraction of these elements from mine waste.

The implications for India are multifaceted. Reducing reliance on imported rare earths would strengthen domestic manufacturing—especially in clean energy, high-tech, and defence sectors. It could also give India more control in global supply chains, further supported under the newly launched National Critical Mineral Mission, which aims to catalyse strategic mineral self-reliance.

There is also a clear environmental upside. Coal mining leaves behind vast quantities of byproducts, fly ash and overburden that pose disposal and pollution challenges. Turning these into resources aligns with sustainability goals and adds economic value. In a way, India is turning a waste problem into a strategic opportunity.

Here’s the thing: the discovery marks a turning point, but success hinges on execution. These concentrations are promising, yet extracting REEs at industrial scale involves overcoming technical and economic hurdles. Any viable extraction method must be scalable and competitive with traditional approaches.

From the official reports, we know coal-based REE discoveries in northeastern coalfields show even higher proportions of heavy rare earth elements, typically harder to source globally. Extracting those would require specialized technology.

So far, Coal India’s subsidiary, Western Coalfields Limited, is already exploring similar opportunities. For instance, they are examining copper and lithium content in overburden, not just coal, and deploying electric heavy vehicles at mining sites to reduce emissions. That reflects an evolving vision of how mining operations can align with critical minerals goals.

In our view, this moment is strategic and hopeful. India has long depended on imported rare earths, a vulnerability visible when export controls tighten abroad. Singrauli offers a homegrown alternative. But data alone doesn't guarantee impact. India needs pilot plants, refined extraction techniques and robust private‑public partnerships. It needs policy clarity on monetizing non‑traditional mineral sources, and perhaps even international collaboration to sharpen its processes.

What really matters is follow-through. Over the coming months, I'll watch for official announcements of pilot extraction facilities. I'll track publications from partner research institutions showing progress in extraction and enrichment. I'll watch for policy updates under the National Critical Mineral Mission. And I'll look for industrial off‑take agreements, where rare earths extracted from coal waste find real-world buyers.

If all this lines up, India could shift from mineral dependency to strategic autonomy. Think cheaper green technology because raw materials cost less, environmental gains in managing coal waste, and a stronger position in global supply conversations.

What this means in simple terms: India might be sitting on a hidden mineral treasure embedded not in deep mines, but in ordinary coalfield leftovers. If the right investments are made, and the right technologies deployed, India could turn that waste into a reliable supply of rare earth minerals. If not, this achievement might remain a fascinating possibility rather than a practical shift.

The discovery is real. The potential is tangible. The road ahead is long but navigable. The outcome now depends on whether extraction scales, policies evolve, and industry commits. That’s the real test: turning data into delivery.