The government is ramping up efforts to enhance the extraction and refining of rare earth elements (REEs) to build a strong supply chain for critical minerals and clean energy products, including nuclear power.
Expansion at IREL’s Chatrapur Plant
The Indian Rare Earths Limited (IREL) has launched an expansion project at its Chatrapur plant in Ganjam, Odisha, for FY25.
The project will boost annual mineral production capacity by 2,00,000 tonnes while also improving operational efficiency.
Minister of state for the PMO office, Jitendra Singh stated that IREL is consistently integrating new technologies to enhance the production of atomic minerals, including RE-bearing minerals, through capital expenditure (CAPEX) investments.
Economic Growth and Job Creation
IREL’s operations have stimulated local economic activities by supplying minerals to numerous Micro, Small and Medium Enterprises (MSMEs).
The enterprises benefit from the availability of critical minerals, contributing to regional economic growth and job creation.
According to Singh, the Chatrapur plant currently faces no challenges in terms of infrastructure, technology, or market demand.
Nationwide Presence and Record Production
IREL operates plants at three major locations: Chavara in Kollam, Kerala; Manavalakurichi in Kanyakumari, Tamil Nadu; and Chatrapur in Ganjam, Odisha.
In FY24, the company recorded its highest-ever mineral production, reaching 5.31 lakh tonnes—an increase of 3.3% year-on-year.
US Removes Restrictions on IREL and Key Research Institutions
Last month, the US Bureau of Industry and Security (BIS) lifted restrictions on IREL, the Bhabha Atomic Research Centre (BARC), and the Indira Gandhi Atomic Research Centre (IGCAR).
BIS stated that this move aligns with US foreign policy goals by reducing barriers to advanced energy cooperation, including joint research, development, and science and technology collaborations.
Strengthening India-US Cooperation
Matthew Borman, Principal Deputy Assistant Secretary of Commerce for Export Administration, emphasized that removing these three Indian entities from the restricted list will enable closer collaboration between India and the US.
As reported by thehindubusinessline.com, the decision by government aims to create more resilient critical mineral and clean energy supply chains, reinforcing both nations’ energy security objectives.
