India is preparing a significant initiative to incentivize the domestic production of rare earth minerals and magnets, with a financial backing ranging from ₹3,500 to ₹5,000 crore. This strategic move is a direct response to the global challenges posed by China’s dominance in the rare earth mineral processing sector. The proposed scheme, which could be approved within two weeks, aims to boost the burgeoning industries involved in mineral processing within India, thus fostering self-reliance and diminishing the dependence on Chinese imports. This push comes amidst concerns over China’s control, which currently encompasses over 90% of the processing and extraction of rare earth minerals, crucial components for electric vehicle (EV) production and other vital sectors. The government plans to utilize a reverse auction process to facilitate the allocation of incentives, supporting new ventures in the field. Furthermore, amendments to the mines and minerals act are being considered to bolster the critical mineral mission, accompanied by plans for commercially viable domestic production of rare earth permanent magnets in the current year.
