MHI Moves Closer to Rare Earth Magnet Scheme

With China squeezing the supplies of rare earth magnets, used by auto companies, the Ministry of Heavy Industries (MHI) has called a meeting of stakeholders on June 3 to finalize a concept note for a scheme to promote their manufacture in India.

- SURAJEET DAS GUPTA

The note will entail offering targeted financial incentives to firms that get into the business, a public-private partnership model to set up rare earth metal processing as well as magnet-production units, and identifying and collaborating with alternative sources in other countries to reduce India's dependence on only China.

The move comes on the heels of a meeting this Wednesday between the ministry's top officials and representatives of the auto industry. In the meeting the industry representatives hinted that their stocks of rare earth magnets were dwindling and many saying they would be forced to close their factories, which include those manufacturing electric vehicles and those running on the internal combustion engine (ICE), if imports from China did not resume soon.