India Accelerates Self-Reliance in Rare Earth Supply Chain for Clean Energy Leadership

India is stepping up its endeavor to secure a self-reliant rare earth supply chain, essential for its clean energy transition and electric vehicle (EV) aspirations. A new report by Primus Partners, "From Extraction to Innovation," offers a comprehensive roadmap under the "Viksit Bharat" vision to achieve self-reliance in rare earth magnets.

The report recommends five core policy pillars, including market assurance and demand certainty through long-term price mechanisms for NdPr oxide and NdFeB magnets. This would protect investors and boost domestic demand. Additional suggestions include establishing pilot hubs in mineral-rich states, supporting industrial leaders for scale-up, expanding monazite mining, and refining rare earths via Indian Rare Earth Limited (IREL).

A dedicated National Rare Earth Innovation Hub is proposed to promote industry-academia collaborations and global technology transfers, alongside a new inter-ministerial Magnet Ecosystem Coordination Cell under NITI Aayog or DPIIT to align regulatory strategies. With the Union Budget 2024-25 favoring critical minerals, these initiatives aim to reduce input costs, enhance domestic manufacturing, and bolster export competitiveness.

However, with 85-95% of the world's rare-earth magnet production controlled by China, recent export restrictions have intensified supply chain challenges globally. India's reliance on imports has risen, even as it explores domestic sources and partners with mineral-rich countries via Khanij Bidesh India Limited (KABIL).

India aims for 30% EV penetration by 2030 and net-zero emissions by 2070. With rising demand for NdFeB magnets, India's strategic vulnerability is underscored. These magnets are vital not just for EVs, but also for industrial automation, electronics, renewable energy systems, and defense applications.