(Nov 26): India’s cabinet has approved a 72.8 billion rupee incentive programme for rare earth magnets, intensifying the country’s push to build domestic capacity and reduce its dependence on China.
The programme intends to fill the shortage of magnets and create a capacity of 6,000 metric tonnes per annum, India’s Technology Minister Ashwini Vaishnaw said in a cabinet briefing in New Delhi.
India is among a growing number of countries racing to capture a greater share of the rare earth magnet supply chain after China, which processes about 90% of the global output, tightened exports in April. The restrictions, issued during Beijing’s trade dispute with the US, curbed access for automakers worldwide.
The programme will run for seven years and will focus on creating integrated manufacturing facilities. India will set up five units of 1,200 tonnes per annum capacity within three years.
“This will be a major strategic win for the country,” Vaishnaw said. “Without permanent rare earths and semiconductor chips, no manufacturing is practically possible.”
The plan has drawn initial interest from several Indian conglomerates including billionaire Anil Agarwal’s Vedanta Group and the Sajjan Jindal-led JSW Group among others, Bloomberg reported earlier in July.
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