Tiered path likely for self-reliance in rare earth magnets

India may link incentives aimed at spurring rare earth magnet manufacturing to the level of local materials used as the government seeks to counter China’s supply curbs, according to two people aware of the development.

- Manas Pimpalkhare & Rituraj Baruah

The government is consider-inga cascading localization provision for sourcing rare earthoxides, the people said. Theyspoke on the condition of anonymity as the scheme is stillbeing finalized.

Levels or tiers are under consideration, said the first personquoted earlier. “This meanswhoever sources their raw material for processing from India,domestically, they can get higherincentives.”

The ministries of heavy industries, and mines have not final-ised the scheme draft yet, thesecond official said.

Queries emailed to the two ministries on 14 August remained unanswered.

China, which controls about 60% of global rare earth mining and 90% of supply, imposed export restrictions in April, affecting supplies to sectors such as semiconductors, electronics, renewable energy, defence, and automobiles. India’s ₹1,345crore scheme, announced by Union heavy industries minister HD Kumaraswamy, aims to incentivize the processing of rare earth oxides into permanent magnets within the country.