Amid the ongoing issues regarding the rare earth metal scarcity after the processing of the rare earth minerals was halted by China, India has undertaken resolute initiatives to incentivize rare mineral processing. A recent report has revealed that India has firmed up a Rs 3500-5000 crore scheme to incentivize production of rare earth minerals and derived magnets in the country. The new scheme could be approved in a fortnight, as per a top government official who spoke to Economic Times.
The SOPS under the new scheme would be offered through a reverse auction process , the official said. The incentives would be an aid to the new budding industries who endeavor to diversify the mineral processing in India. Such diversification would help the new industry gradually move ahead in the direction of self-dependence and reduce the dependence on Chinese imports.
China’s Control Over 90% Mineral Processing
China’s hegemony over the processing and the extraction of rare earth minerals and magnets poses a challenge, as these are an inherent necessity of EV production. In the recent past, auto industry has been able to flag the detrimental impact of the Chinese curbs and sought government intervention for help. The curbs are a part of special export licenses mandatory for export of seven rare earth elements related to magnets.
India’s EV sector as well as the turbine manufacturing units are the largest demand centers of rare earth metals. All of these industries together demand close to about 4010 metric tonees domestic demand in 2025. The Overall demand would more than double by 2030. To aid the new rare earth mineral needs the government is planning an amendment to the mines and minerals act to support critical mineral mission. Besides regulatory tweaks , the center is also planning a commercially viable domestic production of rare earth permanent magnets in small quantities this year.
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