A Canadian climate technology firm is turning to India's industrial waste — specifically, the red mud left over from aluminium production — to secure a foothold in the global rare earths market. Enervoxa, a developer of climate technology, plans to build a processing plant in eastern India that would extract rare earth elements from bauxite residue, a byproduct long considered a disposal challenge for aluminium producers. Main Developments Enervoxa Chief Executive Vandit Verma told Reuters the company is preparing talks with India's Vedanta, Hindalco Industries, and state-run NALCO. A commercial-scale facility would cost between $250 million and $350 million, financed through strategic equity and project financing. Potential sites are being evaluated in eastern India. The venture could take two forms: full processing of red mud within India, or production of a rare earth concentrate refined at a dedicated downstream facility. Beyond aluminium producers, Enervoxa plans to approach engineering firms, steel manufacturers, and critical minerals processors to build an integrated value chain for recoverable products — including iron oxide, coagulants, pigments, and titanium-bearing materials. Read also: Bangladesh President Shahabuddin Resigns Over Health, Leaving Hasina Isolated Background Recovering rare earth concentrates from red mud is a relatively new commercial application, one that has gained urgency amid growing geopolitical concerns over China's dominance of rare earth processing. Rare earth elements are essential for mobile phones, electric vehicle motors, and defence systems such as cruise missiles. India holds substantial rare earth reserves but lacks industrial-scale facilities capable of processing the minerals to high purity levels. The country is also the world's second-largest aluminium producer and its third-biggest consumer. Enervoxa has spent eight years developing its own process to recover rare earths from red mud, Verma said in an interview Wednesday. India's Jawaharlal Nehru Aluminium Research Development and Design Centre, along with other stakeholders under government think tank NITI Aayog, is conducting research into metal extraction and rare earth element enrichment from red mud, the government stated last year. Why It Matters If successful, Enervoxa's project could reduce India's dependence on imported rare earths while transforming a hazardous industrial waste into a strategic resource. The move also aligns with global efforts to diversify rare earth supply chains away from China, which processes the vast majority of the world's supply. For India, which possesses significant rare earth reserves but lacks processing infrastructure, the project could close a critical gap in its mineral value chain. What's Next Enervoxa is currently evaluating commercial opportunities with companies in India, North America, Southeast Asia, and other alumina-producing regions. The firm also plans to seek Indian government assistance, Verma said. No timeline for a final investment decision has been disclosed, but the company's active engagement with potential partners suggests the project is moving toward feasibility studies.