India To supply Tech To Private Firms For Rare Earth Magnet Productions

In a bid to reduce India's reliance on China for rare earth magnets, the Centre plans to provide permanent magnet manufacturing technology to private industry factories within the next three to four months, said Union Coal and Mines Minister G Kishan Reddy.

Spelling out to the media, Reddy added, "We were 100% reliant on China for rare earth permanent magnets. But China has now denied the supply. To counter this, the Indian government is turning to manufacturing capabilities via technology transfer and Production Linked Incentive (PLI) schemes."

India's Ministry of Mines has developed a permanent magnet processing unit with the necessary equipment, with the assistance of a Hyderabad institute. The technology will now be transferred to private factories by the government to enhance domestic production.

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Rare earth magnets play a crucial role in major industries such as smartphones, defense, space, electric vehicles, and green energy. China now dominates more than 90% of the global magnet production capacity, presenting global supply risks. In April, China started imposing export controls on rare earth goods, triggering a global shortage.

Prime Minister Narendra Modi has pushed rare earth production with some nations during recent worldwide tours. India is also looking for the predictability of Chinese supply, while trade restrictions continue.

To augment domestic capacity development, the government has given incentives to the tune of ₹1,345 crore. Besides that, the Centre has initiated the National Critical Mineral Mission (NCMM) with a goal outlay of ₹16,300 crore and anticipated PSU investments of ₹18,000 crore.

They seek to transform India into a self-reliant center of cutting-edge magnet technologies that are central to its economic and strategic future.