Blitz Bureau
Foreign Secretary Vikram Misri held talks in mid‑June 2025 with China’s Vice Finance Minister, raising concerns over stalled REE shipments. China has agreed to include the issue in broader economic talks. Society of Indian Automobile Manufacturers (SIAM) and Automotive Components Manufacturers Association (ACMA) led a delegation of around 20 executives to Beijing in late May, seeking licence clearances.
Short‑term sourcing is being coordinated via Japan, Korea, EU destinations — but volumes remain limited.
There are also proposals for supply chain build-out. Several advanced materials firms have pitched comprehensive domestic magnet supply chain plans to the Government. IREL plans to double neodymium output to 450 tonne by FY26, and further by 2030; it is also eyeing corporate partnerships to build end‑to‑end facilities.
The Geological Survey of India (GSI) has launched around 195 exploration projects in 2024-25 — including 35 in Rajasthan.
India is also actively engaging with Kazakhstan, Australia, Myanmar, Sri Lanka and Vietnam through KGAB, KABIL, ICAREF, and the Mineral Security Partnership. Setting up global supply agreements is a longer-term strategy, complementing immediate — but limited — sourcing via Japan / EU.
The Government has moved swiftly, with both policy and funding measures. National Critical Mineral Mission (NCMM) was approved in January with Rs 16,300 crore (US $2 billion) for 2024-31. This mission spans exploration, mining, processing, recycling and stockpiling, covering minerals like lithium, cobalt, nickel, and REEs.
For direct financial support, a Rs 5,000 crore scheme has been drafted to reduce dependence on China, with production-linked incentives for magnet manufacturing. The Ministry of Heavy Industries is finalising subsidies to help Indian magnets compete with lower-cost Chinese units.
Production-linked incentive plans also include critical mineral recycling from e-waste to recover REEs.
Among the legal and regulatory reforms, MMDR Act is being amended to expedite approvals and promote exploration / mining of strategic materials. Forty eight critical mineral blocks have been auctioned in REE sites in Goa, Uttar Pradesh, Karnataka, Chhattisgarh — for private investment.
Institutional partnerships include IREL‑BARC‑DMRL collaboration which established the REPM plant using indigenous technology. A 500 tpa to 5,000 tpa NdFeB plant is planned in Hyderabad in partnership with Department of Science and Technology (DST) and Midwest Advanced Materials, as well as Trafalgar Group in Gujarat for 2027 supply.