In a proactive step to mitigate the impact of China’s control over rare earth metal processing, India is set to launch a major scheme valued between ₹3,500 and ₹5,000 crore. This initiative is designed to incentivize the production of rare earth minerals and associated magnets within the country. The move is particularly critical given China’s significant hold on the market, which has created supply chain vulnerabilities, especially for EV manufacturers and other industries reliant on these essential materials. The government plans to utilize a reverse auction process to allocate incentives, supporting new industries in this field and reducing dependence on imports from China. The new scheme could be approved in a fortnight, as per a top government official. The government is also contemplating adjustments to the mines and minerals act to support the critical mineral mission. Alongside these regulatory adjustments, plans are underway for commencing domestic production of rare earth permanent magnets in the present year. This aims to address the increasing demand, which is expected to more than double by 2030, with significant growth anticipated by 2025.
India Unveils ₹5,000 Crore Initiative to Propel Rare Earth Mineral Production and Counter Chinese Dominance
