China Tightens Control—India Fights Back with IREL’s Rare Earth Expansion

India's state-owned miner IREL (India) Ltd is going all out in the rare earth space, with a strategy to expand its mining capacity, set up magnet production, and reduce exports to Japan as China cranks up the pressure on exports.

Key Points:

- Production of Rare Earth Magnets: IREL looks for collaboration to produce magnets for the automotive and pharma sectors with lower import reliance.
- Increased Mining: Plans to increase rare earth mining and processing capacity by 400%, with four new mines pending approval.
- Export Suspension: India has requested IREL to suspend rare earth exports to Japan, prioritizing domestic needs following recent restrictions imposed by China.
- Change in Strategy: The government is promoting the local processing of rare earth with a view to breaking China's monopoly of the industry.

China's export restrictions on rare earth elements have disrupted worldwide supply chains and impacted the automotive and electronics industries in India. India is therefore accelerating efforts to establish domestic stockpiles as well as seek alternative supplies in countries like Australia and Vietnam.

IREL's expansion would change the rare earth situation in India, ensuring self-reliance in critical materials and driving clean energy and advanced manufacturing.

Source: The Hindu Business Line, Hindustan Times, Economic Times