Seize rare earth opportunity

ARE EARTH MAGNETS are essential for the world's net-zero transition.

- HARSHA VARDHAN AGARWAL

They mark the future of India's energy transition with critical applications in electric vehicles (EVs), electronics, and renewables. They are the cornerstones of a clean, connected, and secured (supplies) future.

The recent export restrictions by China on seven rare earth elements and magnets necessitates fast-tracking of the pursuit of a strategic and self-reliant rare-earth value chain in the country. Approximately 90% of the global production supplies are concentrated in China. It would be difficult for our domestic industries to sustain the supply squeeze or fluctuations for rare earth magnets beyond a period of few weeks. While the immediate fallout may be manageable due to the existing inventories and alternative suppliers, the real solution lies in building robust domestic capabilities to insulate India from such shocks.

Other countries are rushing to secure or diversify their supplies of rare earth magnets or boost their own production. In the US, federal agencies have been asked to streamline permissions and accelerate the development of mineral projects while invoking the Defense Production Act to prioritize and fund the mining and processing of critical minerals on public lands. The US recently signed a memorandum of cooperation on critical minerals with Saudi Arabia, alongside a memorandum of understanding that was signed between US and Saudi firms to advance a complete mine-to-magnet rare earth supply chain. Similarly, in Malaysia, the government has formulated a National Advanced Materials Technology Roadmap 2021-2030 to catalyze the development of the country's advanced materials industry ecosystem.