Govt's China counter: Push for RE magnets, Pg12

Key Highlights:

• The Indian government approved a Rs 7,280-crore scheme to boost domestic manufacturing of rare earth permanent magnets (REPMs).
• The scheme aims to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity.
• Beneficiaries will receive sales-linked incentives worth Rs 6,450 crore over five years, plus a capital subsidy of Rs 750 crore.
• India imported over 53,000 tonnes of rare earth magnets in 2024-25, with over 90% originating from China.
• The National Critical Mineral Mission (NCMM), with an outlay of Rs 16,300 crore, aims to secure India’s critical mineral supply chain.

Detailed Insights:

• The REPM scheme focuses on sintered rare-earth permanent magnets, particularly neodymium, iron, and boron (NdFeB) magnets, which are the strongest and most commercially demanded.
• The manufacturing process involves multiple stages, from mining and processing to refining and magnet production; the scheme targets the final stages of converting rare earth oxide to metal, metal to alloy, and alloy to REPM.
• India's reliance on China for REPMs poses a strategic vulnerability, especially given China's control over 90% of global REPM manufacturing and raw material processing.
• The National Critical Mineral Mission (NCMM) seeks to enhance domestic exploration, mining, and processing capabilities, along with securing access to critical minerals overseas through initiatives like Khanij Bidesh India Limited (KABIL).
• Global initiatives, such as the Quad's focus on critical mineral supply chains and the G7's Critical Minerals Action Plan, reflect a broader international effort to reduce dependence on China for critical minerals.

Key Concepts Involved:

• Rare Earth Permanent Magnets (REPMs): High-strength magnets essential for electric vehicles, renewable energy, and defense.
• Sintered Magnets: Magnets made by compacting and heating powdered materials, primarily NdFeB magnets.
• National Critical Mineral Mission (NCMM): India's initiative to secure the supply of critical minerals through domestic exploration and international collaborations.