India’s government announced today that it will nearly triple the size of its incentive programme for rare‑earth magnet manufacturing, boosting the budget to more than ₹7,000 crore. The move is aimed at building domestic capacity in the strategic sector of rare‑earth magnets—components that power electric vehicles, wind turbines, smartphones and defence equipment.
China controls almost 90 % of the world’s rare‑earth processing. In April, Beijing tightened export controls on critical minerals, a move that rattled supply chains for automakers and clean‑energy producers. India’s expanded production‑linked incentive (PLI) plan is designed to attract private investment, promote local manufacturing and reduce the country’s reliance on Chinese imports.
The government is also looking at partnerships with resource‑rich nations to secure steady access to raw materials for magnet production. Experts say the incentive boost is part of a broader strategy to strengthen India’s entire critical‑mineral ecosystem—from exploration and mining to value addition and high‑tech manufacturing.
Earlier in the day, the PHD Chamber of Commerce and Industry (PHDCCI) urged the government to create a dedicated Department of Critical Minerals and adopt “aggressive mineral diplomacy.” The chamber also called for better inter‑ministerial coordination and strategic stockpiling of key minerals, similar to the U.S. oil reserve model.
Critical minerals are essential for the global energy transition. Electric‑vehicle batteries are estimated to be six times more mineral‑intensive than conventional car batteries, while solar panels and wind turbines require up to three times more minerals than traditional energy sources.
“By scaling up rare‑earth magnet production, India seeks not only to strengthen its manufacturing base but also to become a key player in the global clean‑energy and electronics value chains,” said industry analysts.
Source: ianslive
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