Latest news with #MinesandMinerals(DevelopmentandRegulation)Act
Hans India
3 days ago
- Business
- Hans India
Rare earths crisis: India taking concrete steps to mitigate possible disruptions
New Delhi: As recent export restrictions imposed by China on key rare earth materials disrupt global supply chains, India has been taking a series of steps on the domestic front to mitigate possible disruptions, according to Finance Ministry. A concerning phenomenon amidst the tariff and trade developments was the imposition of restrictions on the export of rare earth elements (REEs) by China. Minerals such as lithium, cobalt, nickel, and rare earth elements are vital for solar panels, wind turbines, electric vehicles, and energy storage systems. 'Hence, such restrictions are bound to hamper the development of industries such as electric vehicles, defence and renewable energy,' said Finance Ministry's 'Monthly Economic Review for May 2025'. 'A list of 30 critical minerals was identified, with 24 brought under the exclusive auction authority of the Central Government through August 2023 amendments in the Mines and Minerals (Development and Regulation) Act, 1957. The Government of India had also launched the National Critical Mineral Mission (NCMM) in January 2025, a seven-year initiative (2024-25 to 2030-31), to build a self-reliant and resilient framework for securing critical minerals essential to India's clean energy transition and strategic sectors,' according to the Economic Review document. The NCMM targets 1,200 domestic exploration projects and supports overseas acquisitions by both PSUs and private entities. It also aims to strengthen the entire value chain through patents, skill development, mineral processing parks, and recycling of secondary sources. India is also expanding offshore exploration and forging international partnerships, including with Argentina and Australia, to diversify supply sources. The country joined the US-led Minerals Security Partnership (MSP) that aims to strengthen critical mineral supply chains through public and private sector investment. India is the only developing country member in the 14-member MSP. 'Further, India is investing abroad in exploring and acquiring critical mineral assets in resource-rich countries. A Joint Venture, Khanij Bidesh India Ltd. (KABIL), has been incorporated with the objective of acquiring critical mineral assets abroad,' said the Economic Review. Under the NCMM mission, the Geological Survey of India (GSI) has intensified its exploration programmes. In the 2024-25 field season, GSI had taken up 195 projects, focused on identifying and assessing critical mineral deposits. The guidelines for setting up Centres of Excellence (CoE) under the NCMM were issued in April 2025. CoEs will identify, develop and implement extraction processes and beneficiation technologies for a host of critical minerals from multiple sources and conduct directed R&D to reach Technology Readiness Levels. The Minerals (Evidence of Mineral Contents) Amendment Rules, 2025, were notified by the Ministry of Mines on June 12, 2025, to revise the exploration norms for establishing "evidence of mineral contents" in respect of REEs in a mineral block. This is crucial for determining when a mineral block is ready to be auctioned for mining or composite licenses, for rare earth elements. Earlier this week, Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, said the government is likely to take a decision within the next 15 to 20 days on launching a subsidy scheme to support domestic production of rare earth magnets. The scheme is aimed at reducing India's dependence on China for critical components used in electric vehicles and other high-tech industries.
Time of India
21-06-2025
- Automotive
- Time of India
Reducing acute dependence, countering China's near monopoly: India readies Rs 5,000 crore scheme for rare earth minerals
The incentives in India's proposed programme will be distributed through a reverse bidding mechanism. (AI image) India is readying a plan to reduce its acute dependence on China for rare earth minerals. The move comes at a time when China has imposed export curbs on rare earths and Indian industry has raised alarm bells on shortage of magnets and other components. India is looking at a Rs 3,500-Rs 5,000 crore scheme to promote the production of rare earth minerals and derived magnets domestically, with approval expected within two weeks, according to a senior government official. "The priority is to start domestic-critical mineral production in the shortest time period," the official told ET. China dominates global supply of rare earth magnets and has implemented export restrictions. These essential minerals, vital for manufacturing automobiles, electric vehicles (EVs) and renewable energy infrastructure, face supply constraints. The incentives in India's proposed programme will be distributed through a reverse bidding mechanism. This initiative follows an internal ministerial assessment that highlighted the necessity to diversify supply sources, given the substantial reliance on imports from China. Also Read | India bleeds Pakistan dry: Water at 'dead' levels in Pakistan's dams; bigger Indus river plans in the works - top points to know "Fresh steps are being taken to boost domestic availability of critical minerals," the official said, noting that a minimum of five major Indian companies have informally shown interest in manufacturing these materials during discussions with government authorities. India's Rare Earth Requirements The automotive sector has highlighted concerns about Chinese restrictions and requested governmental assistance. In April, Beijing introduced mandatory special export licences for seven rare earth elements and associated magnets. In India, manufacturers of EVs and wind turbines represent the primary consumers of rare earth elements, accounting for more than 50% of the projected domestic demand of 4010 metric tonnes in 2025. The overall requirement is anticipated to reach 8220 metric tonnes by 2030. Also Read | 'Dramatic decline…watch out…': China's exports to US dip sharply amid Trump trade war; why India needs to be on the guard Additionally, the government intends to modify the Mines and Minerals (Development and Regulation) Act to bolster the critical mineral initiative. Beyond regulatory adjustments, the Centre anticipates limited but commercially viable domestic production of rare earth permanent magnets to commence later this year. Financial support has been allocated to Midwest Advanced Materials Private Ltd, Hyderabad, by the ministry of science and technology. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
20-06-2025
- Business
- News18
Seeking Pole Position In Rare Earth Magnet Sector, India Plans Rs 3,500 Cr To Rs 5,000 Cr Scheme
This strategic initiative responds to China's recent decision in April 2025 to tighten export rules on rare earth materials and magnet products, disrupting global supply chains India is poised to launch a substantial scheme valued between Rs 3,500 crore and Rs 5,000 crore, aimed at significantly boosting domestic production of rare earth minerals and the essential magnets derived from them, according to reports. This strategic initiative responds to China's recent decision in April 2025 to tighten export rules on rare earth materials and magnet products, which has disrupted global supply chains. These new restrictions have caused bottlenecks in vital sectors in India, the US, and Europe, particularly affecting the automotive and technology industries that heavily depend on these specialised magnets. Despite possessing an estimated 6.9 million metric tonnes of rare earth reserves, ranking fifth globally, India has historically lacked a strong manufacturing base for rare earth magnets. Data from the fiscal year ending March 2025 underscores this dependency, with India importing 53,748 metric tonnes of these magnets, mainly from China. This heavy reliance has become a strategic vulnerability, particularly as Chinese rare earth product exports dropped by 61 per cent in May 2025 compared to the same month last year, hitting a five-year low. In addition to financial incentives, the government is considering other supportive measures, including potential tariff exemptions for machinery used in rare earth processing and magnet manufacturing. Regulatory adjustments under the Mines and Minerals (Development and Regulation) Act are also being explored to streamline the process for domestic production. This move follows a comprehensive ministerial-level assessment that highlighted the urgent need for India to secure alternative supply sources for these crucial materials. Indian automobile manufacturers, facing potential production cuts by July due to the supply crunch, have been vocal in urging the government for timely support. The long-term goal is clear: to establish India as a significant rare earth magnet manufacturing hub and reduce China's dominance in this critical segment of the global supply chain.
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Business Standard
20-06-2025
- Business
- Business Standard
Govt plans ₹5,000 cr boost for rare earths amid China export curbs
India is finalising a ₹3,500-5,000 crore scheme to ramp up local production of rare earth minerals and the magnets made from them, The Economic Times reported today. A senior government official was quoted as saying that the plan could get official approval within two weeks. Since April, China has limited its exports of rare earth materials. This move has caused difficulties for automakers and tech manufacturers around the world. Industries in the US, Europe, and India are facing shortages of essential magnets. Domestic firms express interest At least five major Indian companies have shown preliminary interest in producing rare earth materials, according to the government official quoted by The Economic Times. The government will offer benefits through a reverse auction process under this upcoming scheme, it is said. The proposal for these incentives came after a ministerial review suggested India needed to diversify its sourcing channels. The automobile industry in particular raised concerns about the impacts of Chinese restrictions and requested government support. Although India possesses 6.9 million metric tons of rare earth reserves, the fifth-largest globally, it lacks any domestic magnet manufacturing capacity. India relies on imported magnets, mainly from China. In the financial year 2024-25(FY25), India imported 53,748 metric tons of rare earth magnets, government data showed. China's control over global magnet supply China makes around 90 per cent of the world's permanent rare earth magnets. It has used this strong position in the ongoing trade conflict with the United States. Export controls introduced on April 4 affect not only seven specific rare earth elements but also magnets that include even small amounts of these materials. China's rare earth exports drop sharply China's exports of rare earth products dropped to a five-year low in May. Exports fell by 61 per cent compared to the same time last year — down to 2,117 tonnes, according to Bloomberg. This is the lowest since February 2020. These products, different from raw minerals and metals, are mainly in the form of magnets. Govt planning regulatory tweaks To support its critical minerals programme, the Indian government plans to amend the Mines and Minerals (Development and Regulation) Act. Alongside regulatory changes, the government expects small-scale commercial production of rare earth permanent magnets to begin later this year within India. India to stop rare earth exports to Japan India has asked state-run company Indian Rare Earths Ltd (IREL) to end a 13-year-old rare earth export deal with Japan. The government wants to ensure that local needs are prioritised. IREL also aims to improve India's capacity to process rare earth materials. Commerce Minister Piyush Goyal told IREL to halt the export of rare earths, especially neodymium, which is widely used in magnets for electric vehicle motors.
Time of India
20-06-2025
- Business
- Time of India
Rare earths set to get up to ₹5,000 crore incentive scheme
India has firmed up a ₹3,500-5,000 crore scheme to incentivise production of rare earth mi nerals and derived magnets in the country and could be approved in a fortnight, a top government official said. "The priority is to start domestic-critical mineral production in the shortest time period," the official told ET. The sops under the proposed scheme will be offered through a reverse auction process, the official said. The decision to offer incentives for rare earths comes after an internal ministerial review flagged the need for diversification in the wake of acute dependence on Chinese imports. "Fresh steps are being taken to boost domestic availability of critical minerals," he said, adding that at least five large domestic companies had informally expressed keenness to produce these in consultations with the government. China has a near monopoly of the world's supply of rare earth magnets and has curbs on exports. These critical minerals needed in the manufacture of rare earth magnets are crucial for making cars, electric vehicles (EVs) and the renewable energy infrastructure. Industry, particularly the automobile industry, has flagged the detrimental impact of the Chinese curbs and sought government intervention. Beijing in April made a special export licences mandatory for export of seven rare earth elements and related magnets. India's EV and wind turbine makers are the largest demand centres for rare earth elements, cornering over half the entire 4010 metric tonne domestic demand in 2025. Overall demand is expected to more than double to 8220 metric tonnes by 2030. Besides, the government is also planning an amendment to the Mines and Minerals (Development and Regulation) Act to support the critical mineral mission. Besides regulatory tweaks, the Centre is also expecting commercially viable domestic production of rare earth permanent magnets in small quantities later this year. The ministry of science and technology had sanctioned funding for Midwest Advanced Materials Private Ltd, Hyderabad.
