Andhra Pradesh CM Proposes Rare Earth Minerals Cluster to Boost Critical Minerals Sector

Andhra Pradesh Chief Minister N. Chandrababu Naidu has proposed the establishment of a rare earth minerals cluster in the state to position Andhra Pradesh as a major hub for the exploration, processing, and value addition of critical minerals.

The proposal aims to leverage the state’s mineral resources and attract investments in rare earth mining, processing facilities, advanced manufacturing, and downstream industries. The initiative is expected to support sectors such as electric vehicles (EVs), renewable energy, electronics, defence, aerospace, and semiconductors, all of which rely heavily on critical minerals.

The Chief Minister emphasized the need to build a robust ecosystem for rare earth minerals by encouraging public-private partnerships, technological innovation, and infrastructure development. He also highlighted the importance of strengthening domestic supply chains to reduce import dependence and enhance India’s strategic capabilities in critical minerals.

The proposed cluster aligns with the Centre’s vision of securing critical mineral resources essential for the clean energy transition and advanced manufacturing. If implemented, the project could generate employment, attract global investors, and transform Andhra Pradesh into a key destination for mineral-based industries.

The initiative reflects the state’s broader strategy to promote industrial growth, boost exports, and contribute to India’s efforts to become self-reliant in the critical minerals sector.