Down Up to 70% From 52-Week Highs: 3 Rare Earth–Linked Stocks to Watch as India Pushes Critical Minerals

India’s rare earth ambitions are slowly taking shape as the country looks to reduce its dependence on imports—particularly from China—for critical minerals that power electric vehicles (EVs), renewable energy systems, electronics, and defence applications. While policy intent has strengthened, stock market enthusiasm around rare earth–linked companies has cooled sharply, with several names correcting as much as 70% from their 52-week highs.

With demand for rare earth elements rising alongside India’s EV transition—nearly 2 million electric vehicles were registered in FY25, up 17% year-on-year—the sector is again drawing investor attention. According to recent government approvals, India has cleared a ₹72.8 billion programme focused on manufacturing rare earth permanent magnets, a key component in EV motors, wind turbines, and aerospace systems.

Against this backdrop, here are three stocks often associated with the rare earth theme that have seen steep corrections and are now being closely tracked by investors. It is important to note that none of these companies is a pure-play rare earth producer; their exposure is either indirect, exploratory, or part of a broader diversified business model. 

🔹 Owais Metal and Mineral Processing

Correction from 52-week high: ~70%

Owais Metal and Mineral Processing operates across a wide range of metals and minerals, including manganese oxide, ferro manganese, quartz slabs, and recycled materials. The company has also developed proprietary technology to recover rare earth minerals from industrial slag, supplying materials used in electronics, semiconductors, defence equipment, and capacitors.

Listed on the SME platform in early 2024, the stock saw a sharp rally post-listing before correcting steeply. Despite the stock’s decline, the company reported steady revenues in H1 FY26, with management expressing optimism about improving business conditions and future growth.

While rare earth recycling remains a relatively small part of its overall operations, investors see potential optionality if India’s recycling and critical mineral recovery ecosystem gains scale. 

🔹 NLC India

Correction from 52-week high: ~15%

NLC India is best known for its lignite mining and integrated thermal power generation operations in Tamil Nadu and Rajasthan. However, the company has recently signalled intent to diversify into critical minerals, including lithium, copper, cobalt, and rare earth elements.

The company has initiated preliminary discussions for overseas mineral blocks in Africa and has been encouraged by government authorities to aggressively explore critical mineral opportunities. In parallel, NLC India is expanding its renewable energy footprint, targeting 10 GW of green energy capacity by 2030 through its wholly owned renewable subsidiary.

Although rare earths are not yet a material revenue contributor, NLC’s PSU backing, mining expertise, and long-term diversification strategy position it as a strategic player in India’s broader critical minerals roadmap. 

🔹 Eco Recycling

Correction from 52-week high: ~57%

Eco Recycling is a prominent player in India’s e-waste management space, offering services such as asset recovery, recycling, data destruction, and reverse logistics. The company is preparing to scale up mineral recovery operations focused on printed circuit boards, hard drives, and lithium-ion batteries.

Its recently commissioned lithium-ion battery recycling facility enhances its ability to recover valuable metals such as cobalt, nickel, and manganese—materials that are critical to EV batteries and energy storage systems. While margins have moderated and profits declined year-on-year in the recent quarter, the company continues to invest in value-added recycling segments and capacity expansion using internal accruals.

As India tightens Extended Producer Responsibility (EPR) norms and pushes domestic recycling, Eco Recycling’s role in the circular economy could become more prominent.

📌 Should Investors Consider Rare Earth–Linked Stocks Now?

Most Indian stocks associated with rare earth narratives are not direct producers. Revenues linked specifically to rare earths remain negligible, and stock movements are often driven by thematic momentum rather than fundamentals.

That said, policy signals are becoming clearer. Strategic concerns around China dependence, defence indigenisation, EV supply chains, and clean energy have placed critical minerals firmly on the national agenda. Over time, this could translate into incentives, faster clearances, and infrastructure support.

For investors, the key lies in disciplined evaluation—assessing core business strength, governance, balance sheet quality, and realistic valuation expectations. Rare earth exposure should be seen as a long-term optionality rather than an immediate earnings driver.