Can India become self-reliant in REE production?, Pg8

Key Highlights:

• The Union Cabinet approved a ₹7,280-crore scheme to boost domestic manufacturing of rare earth permanent magnets (REPM).
• China dominates the REE sector, controlling 90% of processing and 70% of production, despite holding only 30% of global reserves.
• In April, China imposed export restrictions on seven rare earth elements and finished magnets, impacting sectors like automobiles.
• India imported over 53,000 metric tonnes of REE magnets in FY 2024-25, despite holding 8% of global REE reserves.
• The government launched the ₹16,300 crore National Critical Mineral Mission in January, with a total outlay of ₹34,300 crore over seven years.

Detailed Insights:

• Rare earth elements (REEs) are crucial for industries like electric mobility, renewable energy, electronics, and defense, driving India's focus on self-reliance.
• China's export controls on REEs are not new, with previous restrictions in 2009 leading to a WTO case, highlighting their strategic use for geopolitical and economic objectives.
• India's REE reserves are mainly found in monazite sands across Andhra Pradesh, Odisha, Tamil Nadu, and Kerala, but domestic production remains below 1% of global output.
• The National Critical Mineral Mission aims to boost domestic production through exploration, processing, and recycling of minerals like lithium, cobalt, and rare earths.
• Challenges remain for India, including a lack of refining infrastructure, skilled labor, innovation capacity, and bureaucratic hurdles in fast-tracking environmental regulations.
• India's monazite sands contain light rare earths like Neodymium, and companies are planning to increase capacity in rare earth magnet recycling from electronic waste.

Key Concepts Involved:

• Rare Earth Elements (REEs): A set of seventeen metallic elements crucial for various modern technologies due to their unique magnetic and catalytic properties.
• Rare Earth Permanent Magnets (REPM): Powerful magnets made from alloys of rare earth elements, essential for electric vehicles, wind turbines, and electronics.
• Monazite Sands: A phosphate mineral that contains rare earth elements, thorium, and uranium, found in beach sands and riverbeds.
• National Critical Mineral Mission: A government initiative to secure the supply of critical minerals for India's economic and strategic needs through exploration and domestic production.