Race for rare earth: India hastens to break free from China’s grip
Currently, China has imposed export restrictions on rare earth magnets, a component over which it holds a monopoly in both supply and processing
| Photo Credit:
cueapi
India’s auto-makers have nearly a month-long supply of rare earth magnets — a critical component in EV manufacturing — government officials who took stock of the situation said. As an immediate contingency plan, the country is looking to commercialise magnet-making technology available with certain government entities, while also formalising alternate supply arrangements of rare earth elements, probably from Vietnam and even tapping the US.
According to a senior government official, Hyderabad-based Midwest Advanced Materials Private Ltd (MAM) will be one of the first companies to start commercial production of magnets in India for EVs and is expected to take a minimum of six months to start production.
Currently, China has imposed export restrictions on rare earth magnets, a component over which it holds a monopoly in both supply and processing. The country accounts for nearly 70 per cent of global rare earth element (REE) mining and controls 90 per cent of total worldwide production.
On Friday, Mines Minister GK Reddy stated that there continues to be supply chain dominance of one particular country in rare earth element mining and processing. He did not name China.
Indian Manufacturing
Previously, the Department of Science granted funding support to MAM with a focus on advancing the commercial manufacturing of Neodymium materials and Rare Earth Permanent Magnets, integral components for e-mobility applications.
The company will establish an integrated production module for rare earth magnets, starting with oxides. Neodymium (NdFeB) permanent magnets are vital for propulsion systems in electric vehicles and generators in renewable energy infrastructure. There is an initial production target of 500 tonnes per year.
“It will be another six-odd month or so for commercial production to start,” a senior government official said.
The India Rare Earth Ltd (IREL) will supply the raw materials, thereby making the project “financially feasible in terms of operating expenses”. The long-term plan is to have a production target of 5,000 tonnes per annum by 2030.
Rare Earth Metal Mining
Although a state-run firm, IREL, has been mining rare earth materials for years, these are mainly used by the atomic energy and defence units, with most supplies for other uses still imported from China.
The Geological Survey of India (GSI) has established resource of REE in Barmer and Sikar districts of Rajasthan; where 16 rare earth metal and critical mineral exploration projects were carried out in FY25. Most of these are in the G4 stages – reconnaissance surveys underway.
India also exports neodymium to some Asian countries (not China), said a source, for processing.
Published on June 6, 2025
