ENA Sectors 2025-06-06 17:20:26 <p><span style="font-size:14px"><strong>New Delhi, Jun 6 (KNN) </strong>India is taking proactive measures to address the growing concern over its dependence on China for rare earth magnets, essential components in electric vehicles (EVs), renewable energy systems, and defence technologies. </span></p> <p><span style="font-size:14px">In response to China's export restrictions imposed in April 2025, the Indian government is drafting a plan to offer financial incentives to companies engaged in domestic production of rare earth magnets.</span></p> <p><span style="font-size:14px">The Ministry of Heavy Industries is considering production-linked incentives and potential subsidies to bridge the price gap between Indian-made magnets and cheaper Chinese imports. </span></p> <p><span style="font-size:14px">This initiative aims to gradually build a domestic supply chain and reduce reliance on imports. While the plan is still in the drafting stage, officials are expected to meet with industry representatives soon to discuss the details.</span></p> <p><span style="font-size:14px">Despite possessing significant reserves of rare earth elements, India's current production capacity is insufficient to meet the growing demand. </span></p> <p><span style="font-size:14px">The country has the world's third-largest reserves of rare earth elements, approximately 6.9 million tonnes. </span></p> <p><span style="font-size:14px">However, limited private investment in mining and processing has hindered the development of a robust domestic supply chain.</span></p> <p><span style="font-size:14px">The government's National Critical Mineral Mission, launched in April 2025, aims to enhance self-reliance in strategic minerals like neodymium, a key component in magnets used in EVs. </span></p> <p><span style="font-size:14px">Exploration efforts have begun, but due to a lack of processing facilities, India currently exports some of this material to Japan.</span></p> <p><span style="font-size:14px">In the short term, the government is planning to send a delegation of auto industry leaders to China to request faster export clearances. </span></p> <p><span style="font-size:14px">This move underscores the urgency of securing a stable supply of rare earth magnets to prevent potential disruptions in the automotive sector.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 42355 https://knnindia.co.in/news/newsdetails/sectors/india-plans-incentives-to-boost-domestic-rare-earth-magnet-production-amid-supply-shortages 2025-06-06 17:20:26 knnindia.co.in