Mumbai, India – The Indian government has approved a €700 million investment plan to boost the extraction and processing of rare earth minerals used in the manufacture of permanent magnets. This strategic move aims to reduce reliance on imports, particularly from China.
The initiative aims to create a robust local supply chain to support vital national industries such as electronics and renewable energy. It also encompasses the defense and aerospace sectors, where permanent magnets are a key component.
According to the official statement, New Delhi aims to achieve a production capacity of up to 6,000 tons per year. This will enhance India’s industrial independence and position it globally as a competitive player.
This move came after China imposed restrictions on rare earth exports. These minerals represent more than 60% of the global supply, raising concerns for Indian companies such as Bajaj Auto. Last October, China granted some Indian companies limited licenses to import these minerals.
The Indian government expects domestic demand for rare earth minerals to double by 2030. Therefore, it is making this plan part of a long-term strategy to boost the industry and reduce external dependence.
