India's Bold Move to Boost Rare Earth Magnet Production Amidst Global Supply Crunch
India plans a Rs 1,345-crore scheme to subsidize rare earth magnet production, countering China's export restrictions. The initiative involves incentives for two chosen manufacturers to convert rare earth oxides into magnets, vital for EV and semiconductor industries. Approval awaits completion of inter-ministerial consultations.
- Country:
- India
In a strategic response to China's recent export restrictions, India is preparing to launch a Rs 1,345-crore initiative to boost the domestic production of rare earth magnets. Union Heavy Industries Minister H D Kumaraswamy announced on Friday that the scheme includes incentives for two selected manufacturers, aiming to enhance India's supply chain resilience.
The proposed scheme seeks to alleviate the global supply disruption impacting electric vehicle manufacturers, among others, by supporting the conversion of rare earth oxides into high-performance magnets. Secretary Kamran Rizvi explained that the plan promises comprehensive backing for the selected companies and is currently pending inter-ministerial consultations before Cabinet approval.
The urgency of the initiative underscores its significance, particularly for the automotive and semiconductor sectors. With India's Indian Rare Earth Magnets Ltd as a key player, the country is poised to strengthen its foothold in the rare earths industry, reducing reliance on Chinese exports.
(With inputs from agencies.)
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