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Schemes planned at various levels to promote permanent magnet manufacturing
The schemes could be under the National Critical Minerals Mission (NCMM), announced in January.
An inter-ministerial meeting regarding rare earth and critical minerals was held on June 17.
Key ministries involved included the Ministry of Coal and Mines, the Ministry of Atomic Energy, the Ministry of Heavy Industries, and the Ministry of Commerce, all aiming to secure a supply chain for the electronics industry, energy, and national security.
While the Ministries of Heavy Industries and Electronics advocate for the local manufacture of magnets for their sectors, the Ministry of Mines is focused on ensuring mineral security for rare earth elements.
'The mining ministry is evaluating critical minerals on various levels-- assessing skillsets, acquiring mining assets or blocks, and discussing recycling options for critical mineral-bearing scrap, including magnets. The ministries of heavy industries and electronics are also addressing magnet manufacturing for their respective sectors. The scale of these schemes could range from ₹3,000 crore to ₹5,000 crore, but concrete plans have yet to be established,' said an industry executive.
Discussions among the ministries began even before China imposed restrictions on the export of rare earth magnets on April 4.
Consultations within the ministry of heavy industries have taken place, with more scheduled in the coming weeks. In the latest discussions, the government sought input from industry bodies and requested written concept notes, the executive said.
Queries sent to the above-mentioned ministries' secretaries and spokespersons remained unanswered till the press time.
China's restrictions on the export of seven heavy and medium rare earth magnets have brought difficulties to automakers and high-tech manufacturers worldwide, including those in India.
'The government is also considering involving private companies in the development of technologies. This effort includes collaborating with recyclers as well as major mining companies like Vedanta, JSW, and Tata Steel. Some funding will be available to these entities through the NCMM,' a senior government official said.
The Mines Secretary previously revealed plans for a ₹1,500 crore incentive scheme to recycle critical minerals such as neodymium (a rare-earth element), copper, lithium, nickel, and cobalt, which will be part of the NCMM. To address challenges in exploration, the Geological Survey of India (GSI) proposed extending training to individuals to facilitate exploration efforts.
'Exploration is the starting point, followed by recycling, creating a circular economy, and mining secondary deposits, like tailings. GSI is not the only organisation involved; anyone interested can participate,' the government official added.
Permanent magnets are essential for various applications, including electric vehicle motors, wind turbine generators, and industrial devices that demand heat resistance and durability. A third government official from the IT Ministry indicated that they are providing input to the Ministry of Heavy Industries and the Ministry of Mines to help shape policies that enhance domestic production and mining of rare earth elements.
Many of these rare earth magnets are recycled for use in electronic components and devices.
Additionally, the government is in talks with countries like Australia and Russia to explore alternative supply chains for rare earth magnets, according to the official.
Experts and analysts suggest that the proposed scheme must be designed to ensure industry competitiveness, enabling widespread production of the necessary products. It is also vital to consider next-generation technologies, providing incentives for innovations that may not yet be commercially viable.
Allocating a budget for these future technologies will encourage entrepreneurs, academia, and researchers to explore new possibilities.
Lastly, the government and industry need to collaborate in securing raw materials necessary for production. Some resources may be sourced locally, while others may need to be imported.
For example, India possesses certain rare earth deposits such as neodymium and praseodymium but lacks dysprosium (DY) and terbium (TB). Without these two elements, it is challenging to produce high-quality magnets, necessitating imports for DY and TB.
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