India's Quest for Rare Earth Independence: A Strategic Roadmap
Primus Partners has proposed a five-pillar blueprint to localize India's rare earth magnet production, crucial for securing its EV future and reducing dependency on Chinese imports. This comprehensive strategy encompasses market assurance, pilot-scale clusters, innovation hubs, and coordinated efforts to boost national capacities in this vital sector.
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- India
A new report by advisory firm Primus Partners has unveiled a comprehensive strategy aimed at localizing the production of rare earth magnets in India, essential for the country's electric vehicle (EV) future. Titled "From Extraction to Innovation: A Blueprint for Enhancing Rare Earth Magnet Ecosystem in India's EV Roadmap," the document outlines a strategic approach covering everything from mineral extraction to magnet manufacturing, targeting sustainable sectors like EVs, wind turbines, and defense technologies.
The strategy consists of five key pillars, including market assurance with government-backed price guarantees and long-term agreements to mitigate global neodymium price fluctuations. It recommends establishing integrated pilot-scale clusters in mineral-rich states such as Odisha, Andhra Pradesh, and Tamil Nadu while identifying three industrial champions to expedite the scale-up in magnet production.
Additionally, the report suggests the creation of a National Rare Earth Innovation Hub to enhance R&D on recycling, magnet efficiency, and process technology. Importantly, it proposes a Magnet Ecosystem Coordination Cell to ensure alignment between ministries, expedite clearances, and monitor progress within a stipulated timeframe.
Currently, over 90% of India's magnet imports are from China, which controls a significant majority of global production. Recent disruptions in Chinese supply chains have impacted Indian industries, highlighting the urgency for domestic capability development. "India must accelerate investments in technology and form robust industry-research partnerships to scale up extraction and recycling," said Davinder Sandhu, Co-Founder of Primus Partners.
Given the critical role of rare earth materials in several key industries, including clean energy and automotive sectors, India's government has earmarked Rs 1,345 crore to incentivize the production of these magnets, as part of a broader initiative to reduce import reliance and enhance national security.
(With inputs from agencies.)
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