NMDC, Vedanta and 2 other stocks to benefit after announcement of Rare Earth Mineral Corridor

Synopsis: India’s Rare Earth Mineral Corridor across southern states aims to boost domestic supply for EVs and clean energy. Firms like GMDC, NMDC, Vedanta, Hindustan Zinc, and Motherson may benefit from stronger local mineral production.

Finance Minister Nirmala Sitharaman has started presenting the Union Budget for 2026-27 in Parliament. This is her ninth budget in a row, which is a record. The budget comes at a time when the global economy is uncertain, and trade conditions are fragile. Investors and industries are carefully watching the announcements, especially tax rules, export policies, and sector-wise funding.

One important announcement is the creation of a Rare Earth Mineral Corridor. This corridor will cover mineral-rich states like Tamil Nadu, Odisha, Andhra Pradesh, and Kerala. These regions are known for having valuable rare earth resources. The goal is to strengthen India’s position in the global minerals market.

The government plans to develop this corridor under a scheme launched in November 2025. The scheme supports the manufacturing of sintered rare-earth permanent magnets. These magnets are essential for electric vehicles, electronics, and renewable energy equipment. This step is meant to boost domestic production.

Rare earth minerals are in high global demand, and China currently controls a large share of the supply. By building its own corridor, India hopes to reduce dependence on imports. This move can improve exports, create jobs, and make India more competitive in advanced manufacturing. Here are the stocks that can likely benefit from the creation of a Rare Earth Mineral Corridor

Gujarat Mineral Development Corporation Limited (GMDC)

With a market capitalization of Rs. 18,692.04 crores, the share of Gujarat Mineral Development Corporation Limited has reached an intraday high of Rs. 618 per equity share, rising nearly 6.94 percent from its previous day’s close price of Rs. 577.90. Since then, the stock has retreated and is currently trading at Rs. X per equity share. 

Gujarat Mineral Development Corporation Limited (GMDC) actively pursues rare earth minerals through its flagship Ambadongar project in Gujarat’s Chota Udepur district. The company plans to mine and process rare earth elements like neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb), which are key for permanent magnets in electric vehicles and wind turbines.

GMDC received exploration data from the Atomic Minerals Directorate and indigenous processing technology from BARC to recover mixed rare earth concentrate from ankeritic ore. With an investment of Rs. 2,200 crore for mining and Rs. 1,300 crore for a processing hub on Gujarat’s golden corridor, it targets 12,000 tonnes of rare earth oxides annually by FY 2028, meeting 15 percent of India’s Nd-Pr demand and creating thousands of jobs.

NMDC Limited

With a market capitalization of Rs. 72,673.16 crores, the share of NMDC Limited has reached an intraday high of Rs. 83.02 per equity share, rising nearly 2.30 percent from its previous day’s close price of Rs. 81.15. Since then, the stock has retreated and is currently trading at Rs. 82.66 per equity share. 

NMDC Limited is India’s largest iron ore producer, but it is also expanding into critical and rare earth minerals. The company is exploring new mineral blocks across India to support future technology and clean energy industries. While NMDC is mainly known for iron ore, it has shown interest in strategic minerals that are essential for batteries, electronics, and advanced manufacturing. 

Vedanta Limited

With a market capitalization of Rs. 2,57,342.64 crore, the shares of Vedanta Limited were currently trading at Rs. 658.10 per equity share, down nearly 3.60 percent from its previous day’s close price of Rs. 682.70. 

Vedanta Limited is advancing in rare earth minerals via exploration and processing initiatives. The diversified miner is integrating rare earth elements into its portfolio through government auctioned blocks for copper, nickel, cobalt, and REEs. Its subsidiary Runaya plans Rs. 300-500 crore investment in REE processing and magnet-making facilities, alongside recycling expansion. 

Vedanta eyes strategic production of neodymium within five years, using assets like Hindustan Zinc’s monazite block in Uttar Pradesh. These efforts aim to build India’s REE value chain, reducing import dependence for clean energy applications.

Hindustan Zinc Limited

With a market capitalization of Rs. 2,40,209.39 crore, the shares of Hindustan Zinc Limited were currently trading at Rs. 568.50 per equity share, down nearly 9.60 percent from its previous day’s close price of Rs. 628.85. 

Hindustan Zinc Limited has secured rare earth mineral blocks as part of its critical minerals expansion. As India’s largest zinc producer, it won a Rare Earth Elements (REE) block in an early government auction, alongside potash and tungsten assets.

In July 2025, it became the preferred bidder for the 210-hectare Nawatola-Laband REE block in Uttar Pradesh’s Sonbhadra district via e-auction. The company leverages its mining expertise to explore and develop these reserves, focusing on elements vital for energy transition technologies.

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