VEDANTA IS ON A MINE TO MAGNET STRATEGY

Once the exploration efforts of rare earth bear viable fruit, the authorities can opt for a price discovery model. This will mitigate the key challenge of limited geological exploration data and turn this sector into an investor-friendly one, says Priya Agarwal Hebbar, chairperson, Hindustan Zinc

- SHRABONA GHOSH

China’s export restriction on rare earth is choking India. Precursory events could have hinted at the future. “In October 2023, a rare earth shipment bound for India was delayed for weeks due to new export controls imposed by China. The consignment, essential for manufacturing high-performance magnets used in electric vehicles, sat at a foreign port, stalling production lines and sending ripple effects across downstream industries. It was a reality check! A reminder of what happens when 90 percent of India’s magnets come from one single source country, this is exactly why India’s journey to self-sufficiency in critical minerals is no longer a choice but a strategic necessity,” said Priya Agarwal Hebbar, chairperson, Hindustan Zinc Ltd; non-executive director, Vedanta Ltd.

Although India holds the third-largest reserves of rare earths globally, at approximately 6.9 million tonnes, it contributes less than two percent to the global supply chain. Without domestic magnet-making capacity, EVs, wind turbines, and defense sectors will stay exposed to foreign supply risks.

As the mining pioneer, Hindustan Zinc is attempting to change the narrative. With an investment outlay in low-impact, high-yield technologies, biodiversity offsets, and local partnerships, it has plans to commit $20 billion in various projects across metals, mining, hydrocarbons, rare earths and critical minerals over the next five-six years.

Changes Taking Place