Summary
India has approved a large financial plan to produce its own rare earth magnets by 2025, aiming to reduce reliance on imports, especially from China. These magnets are crucial for many technologies, including electric vehicles and wind turbines. The plan includes incentives for companies to produce magnets, but India faces challenges in technology, expertise, and raw material availability.
Key Facts
- India approved a 73 billion rupee plan ($800 million) to produce rare earth magnets domestically.
- The goal is to make 6,000 tonnes of permanent magnets per year within seven years.
- India currently imports 80-90% of its rare earth materials from China.
- China controls over 90% of global rare earth processing and recently restricted exports during a trade dispute.
- India has the world's third-largest rare earth reserves but does minimal mining.
- India is building facilities to support magnet production but lacks extensive industry experience.
- Experts suggest that India will need partnerships to acquire technology and develop skills.
- Steps are being taken to prioritize domestic use of rare earth materials over exports.
