Government Eyeing Local Production of Rare Earth Magnets |

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In a strategic push to secure vital raw materials for the electric vehicle (EV) and electronics sectors, the government is actively pursuing plans to ramp up domestic production of rare earth magnets. The initiative gains urgency amid China’s export restrictions, which have triggered global concerns over supply chain vulnerabilities.

Leveraging State-Backed Resources for Strategic Security

Officials are currently assessing the capabilities of India Rare Earths, a government of India public sector undertaking (PSU), to lead the country’s rare earth magnet production efforts. In parallel, the government is exploring public-private partnerships as a means to enhance production capacity and reduce dependence on China, which currently dominates the global rare earth market.

Supply Chain Concerns Prompt High-Level Engagement

Recognising the immediate risks posed by China’s trade policies, the commerce and industry ministry raised concerns. It noted the potential short-term impact on India’s automotive and white goods industries. In response, the Directorate General of Foreign Trade (DGFT) convened a meeting with auto manufacturers on 10 June. The objective was to gather insights on the challenges in obtaining Chinese export licenses.

Policy Tools Under Consideration to Build Resilience

To ensure medium and long-term resilience, the government is considering a production-linked incentive (PLI) scheme. It is also evaluating subsidies and other policy incentives. These measures aim to support the creation of a self-reliant rare earth magnet manufacturing ecosystem. The goal is to meet the growing demands of India’s green energy and electronics industries.

Strategic Imperative for Atmanirbhar Bharat

India is advancing domestic capabilities in rare earth magnet production. This move aims to strengthen its position in the global supply chain and reinforce the Atmanirbhar Bharat (self-reliant India) vision. As reported by projectstoday.com, the initiative marks a proactive step toward securing critical materials. These are essential for the nation’s transition to cleaner technologies and a more resilient industrial base.

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