Incentive scheme for rare earth processing on anvil

India in talks with Japan, Vietnam to cope with China's export restrictions

- PUJA DAS

India is currently in talks with Japan and Vietnam for rare earths in response to China's recent import restrictions. Additionally, the country plans to introduce an incentive scheme for processing rare earth oxides into magnets, which is expected to take two years, Union Minister of Heavy Industries H D Kumaraswamy said on Tuesday, adding that a decision regarding this scheme will be taken in 15-20 days.

Following the escalating tariffs imposed by US President Donald Trump on China, Beijing put export restrictions on seven heavy and medium rare earth elements and magnets on April 4. These elements — samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium — are crucial for defence, energy, and automotive technologies. Now, Chinese companies must secure defence licenses to export these materials.

"We have had discussions with the mines ministry, and they are working on this issue. We expect to take a final decision within the next 15-20 days," Kumaraswamy told reporters during the launch of the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) portal.