India's Push for Rare Earth Independence

India is drafting guidelines to incentivize the production of rare earth minerals and magnets, reducing dependency on China. The scheme, involving both private and public sectors, follows China's restrictions on rare earth exports. These minerals are vital for various technologies, including telecom, EVs, and defence.

Consultations are underway as India seeks to develop guidelines to promote the domestic production of rare earth minerals and magnets. This strategic move aims to decrease India's dependency on China, which currently dominates global supply.

The ministries of heavy industries and mines are spearheading a scheme to boost the production of these critical materials. The initiative, which includes both private sector involvement and public sector units (PSUs), is a response to recent Chinese export restrictions.

China, accounting for over 90 percent of the world's rare earth processing, has enforced licensing for exports. This has alarmed India, which sourced more than 80 percent of its magnet imports from China last year. Rare earths, such as samarium and lutetium, are integral to modern technology, from smartphones to electric vehicles.

(With inputs from agencies.)