No quick fix on rare earths; raw materials scarce

There seems to be no quick fix in sight for India's rare earths predicament as it scrambles for magnets, slaps export curbs and weighs production incentives, while a delegation from the country waits to meet Chinese officials.

- T. Surendar

Issues related to raw material availability, global magnet supply, import duty structure and access to technology are key constraints that could delay any local manufacture of rare earth magnets in the short to medium term, said S.B. Mohanty, acting chairman and managing director of IREL Ltd, the state-owned rare earths company.

On 4 April, China restricted exports of seven rare earth elements and magnets critical in defence and automobile sectors.

Since Indian automakers have relied exclusively on China for magnets, the crunch threatened production at companies like Tata Motors Ltd and Maruti Suzuki India Ltd, triggering a search for alternatives.

"We don't make the more powerful batteries that automakers want, because we don't have access to a few rare earth elements that are crucial raw materials in the manufacturing process," Mohanty said in an interview.