Kerala Charts ₹42,000-Crore Rare Earth Corridor to Build Critical Minerals Hub

The Kerala Government has unveiled plans to develop a dedicated rare earth corridor aimed at positioning the state as a major centre for critical minerals processing and advanced manufacturing. The initiative is expected to attract investments worth around ₹42,000 crore and generate significant employment opportunities over the coming years.

As outlined in the state’s latest budget proposals, the corridor will link key industrial and logistics nodes including Vizhinjam, Chavara, and Kochi, leveraging port-led connectivity and existing mineral-processing capabilities. A central hub is planned near the facilities of Kerala Minerals and Metals Ltd in Chavara, where value addition and downstream processing of rare earth elements will be a key focus.

To support the initiative, the state has earmarked ₹100 crore for a Rare Earth Critical Minerals Mission. The mission will bring together state-run enterprises and research institutions to strengthen technology development, improve processing efficiency, and encourage industrial applications of rare earth elements used in clean energy, electronics, and advanced manufacturing.

Officials said the corridor is designed to reduce dependence on imports, integrate Kerala into national and global supply chains for critical minerals, and attract high-value industries. The project is also expected to complement broader industrial and clean-energy initiatives being pursued by the state.

With global demand for rare earth elements rising sharply due to their use in electric vehicles, renewable energy systems, and electronics, the proposed corridor is seen as a strategic move to enhance Kerala’s industrial competitiveness and long-term economic growth.