Govt's rare earths plan draws Vedanta, JSW

A proposed plan by India to spur local production of rare-earth magnets has drawn initial interest from a clutch of large conglomerates, people familiar with the matter said, as the country seeks to cut its reliance on China for these vital electric-vehicle and wind-turbine materials.

- Alisha Sachdev July 9

The government is planning an incentive programme for private sector firms manufacturing these magnets, said the people, asking not to be named.

Anil Agarwal-led Vedanta Group, Sajjan Jindal-led JSW Group and EV parts maker Sona BLW Precision Forgings are among those who have shown keenness in this initiative.

The policy blueprint is likely to be submitted for cabinet approval soon, the people said. The final outlay for the programme is subject to internal consultations and could change, they said.

India is accelerating efforts on this front after China, which controls about 90% of the world's rare earths processing, tightened export controls on rare earths amid a trade war with the US. This has disrupted supply chains for global automobile makers, including those operating in India.

Prime Minister Narendra Modi highlighted the need for a reliable supply of critical minerals at the BRICS gathering in Rio de Janeiro over the weekend. "It's important to ensure that no country uses these resources for its own selfish gain or as a weapon against others," Modi said at the event.