Rare Earth Revolution: Indian Industry Seizes the Moment After China’s Export Cuts

China’s recent decision to cut back on rare earth magnet exports has sent a ripple through industries around the world, and Indian companies are now scrambling to fill the gap. These magnets are vital for everything from electric vehicles to smartphones, and India has relied almost entirely on imports from China—until now.

 

Key Highlights:

 

China supplies more than 90% of the world’s rare earth magnets and recently slashed exports, causing shortages for manufacturers everywhere.

 

India’s dependence is huge. Last year, 93% of rare earth magnets used here came from China, and imports nearly doubled as companies tried to stock up before the new restrictions kicked in.

 

The Indian government is responding quickly, working on a big incentive scheme worth up to ₹5,000 crore to boost local production of rare earth minerals and magnets. Approval is expected soon, and the plan is to attract major players through a reverse bidding process.

 

At least five Indian companies have already shown interest in setting up domestic manufacturing, which is urgent since current supplies are only expected to last a few more weeks.

 

To conserve resources, India has also told its state-run miner to stop exporting rare earths to Japan for now, keeping more of these critical materials at home.

 

The Ministry of Heavy Industries is pushing for public-private partnerships and fast-tracking incentives to build a reliable supply chain within the country.

 

Experts warn that if India can’t build up its own supply soon, key sectors like electric vehicles and clean energy could hit a wall.

 

Source: Times of India, Economic Times, Business Standard, Policy Circle, Financial Express