The country's well-known automobile company mahindra & mahindra (M&M) and auto components manufacturing company Uno Minda are considering their plan to make rare earth magnets in India. A Reuters report quoted government sources as saying that this step has been taken after the indian government gave incentives to reduce dependence on china for rare earth magnets.
Preparation of incentive scheme of 2500 crores
Let us tell you that the government is preparing to launch an incentive scheme of up to Rs 2500 crore to promote the production of rare earth elements (REEs) in the country. India is working fast in this direction so as not to depend more on china, which controls about 90 percent of the processing of more than 90 percent of rare earth magnets in the world.
Amid the trade war with the US, china banned the export of these magnets, which disrupted the global supply chain and has affected many automobile companies. However, after the recent talks between President donald trump and Xi Jinping, its shipping has resumed in the US and Europe, while india is still awaiting approval.
Both come together for the production of REEs
According to media reports, some other companies like Mahindra have also shown interest in investing in the production of rare earth magnets. However, it will take a year or two for production to start. In a recent meeting with the Ministry of Heavy Industries, mahindra reportedly said that it is ready to partner for this work and sign long-term supply contracts for local manufacturers. Uno Minda has also shown interest in this, which supplies parts to many other automobile companies like Maruti Suzuki.
There is no shortage of REEs in India
Let us tell you that there is no shortage of rare earth magnets in India. India has the world's fifth largest reserve of rare earth magnets, but is still dependent on china for its processing and refining. The responsibility of mining it in the country currently rests with the government company IREL. In 2024, IREL produced about 2,900 tonnes of rare earth magnets, most of which is used in the country's nuclear and defense sectors and is also exported to Japan.
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