Indonesia has identified eight mining blocks that hold significant potential for rare earth elements (REEs), with plans for two research initiatives aimed at enhancing rare earth processing technology.

This development was announced by Brian Yuliarto, the head of Indonesia's Mineral Industry Agency, reported Reuters.

The South East Asian nation, the largest economy in the region, possesses extensive reserves of various critical minerals including rare earths.

REEs, comprising 17 elements with 15 silvery-white metals, are essential for manufacturing magnets used in electric vehicles (EVs), mobile phones and missile systems.

Indonesia also ranks as the leading global producer of nickel products and the top tin exporter.

Yuliarto noted that eight mining blocks, rich in REEs and other strategic minerals, have been located in areas including Kalimantan, Sulawesi and the Bangka Belitung islands.

In an address to parliament members, Yuliarto was cited by the news agency as saying: “Apart from rare earths, some of these blocks also contain several other minerals, namely tungsten, tantalum and antimony, which play a very large role in the defence industry.”

State-owned enterprise Perminas will be responsible for mining operations within these blocks, said Yuliarto.

While Yuliarto did not disclose specific estimates regarding the mineral reserves, he mentioned that they are "promising enough" to compete internationally.

The mineral industry agency plans to commence the research projects “in the near future” in Mamuju, West Sulawesi, in the centre of Indonesia.

These projects will coincide with preparations for exploring the REEs.