Blitz Bureau
The road to Atmanirbhar rare earths is steep. India’s current REPM capacity of 3 tonne and oxide production of about 2,900 tonnes per year are modest compared to China’s 160,000 tonne per year REE magnet output.
China’s low-cost advantage has led to magnet values rising only 12 per cent despite a 95 per cent import volume increase. In India, technical gaps include remaining behind in separator technology, magnet metallurgy, and heavy REE processing.
There is hesitation in the private sector as proposals have faltered due to inconsistent duties where raw inputs have been taxed higher than finished products. Infrastructure and expertise gaps include remote geology and lack of skilled manpower.
China’s near-monopoly enables strategic economic coercion as was seen in 2010 (to Japan) and April this year. India’s response has multiple dimensions:
Diplomatic counterplay: China simultaneously pursued diplomacy — even as it leveraged economic restrictions. Mid-June talks, official visits, and emergency delegation to Beijing aimed to unblock licences.
Strategic diversification & alliances: Partnerships are being forged with several nations including Kazakhstan, Australia, Vietnam, South America, and others. India is increasingly being seen as a counterweight to China in critical mineral supply discussions.
Tough road
The current disruption provides both a wake-up call and opportunity. Real change will require:
• Scaling up mining, processing, and magnet production through PSUs and private partners.
• Implementing stronger PLI incentives so Indian magnets can compete cost-wise.
• Building capacity in heavy‑duty REEs and separation technologies.
• Utilising global partnerships to diversify supply.
• Incentivising recycling and circular economy efforts.
• Continuing diplomacy to secure emergency imports and stabilise supply.
Task timeline
• Hyderabad plant: 500 tpa initially, scaling to 5,000 tpa by 2030
• Trafalgar magnet facility: 20 per cent of India’s demand by 2027
• IREL expansion: 450 tonne Nd by FY26, doubling by 2030