India targets rare-earth magnet output by year-end

India is aiming to begin domestic production of rare-earth permanent magnets by the end of 2026, a move designed to reduce the country’s heavy dependence on imports of critical industrial materials.

Federal Mining Minister Kishan Reddy said the initiative will be carried out in partnership with private companies, signaling New Delhi’s push to build a more secure and self-reliant supply chain for key technologies, News.Az reports, citing Reuters.

The government approved a 73 billion rupee ($802 million) manufacturing programme in November focused on rare-earth permanent magnets, components widely used in electric vehicles, aerospace systems, defence equipment and renewable energy technologies.

According to the minister, the mining ministry and a state-run entity have already developed the necessary production technology. Plans are underway to establish four critical mineral processing plants across four different states.

India holds the world’s third-largest rare-earth reserves at about 6.9 million tons, based on U.S. Geological Survey data. However, the country currently mines only a small portion of its potential resources, largely due to limited private-sector investment in the sector.

Demand is expected to rise sharply. India’s consumption of rare-earth permanent magnets could double by 2030, yet most of the country’s current needs are met through imports.

The urgency has grown as China, which dominates roughly 90% of global rare-earth magnet processing, tightened shipments last year, creating supply concerns for automakers and other manufacturers worldwide.

News.Az 

By Aysel Mammadzada