Rare Earth Revival: JSW, Mahindra, UNO Minda Signal Shift Toward Domestic Magnet Manufacturing

India’s push to reduce dependence on China for rare earth elements (REEs) has gained momentum, with JSW Steel expressing interest in domestic mining and Mahindra & Mahindra along with UNO Minda exploring rare earth magnet production. The developments align with the government’s proposed Rs 25 billion incentive scheme under the National Critical Mineral Mission.

Key Highlights From Industry Engagement

- JSW Steel is evaluating domestic mining opportunities for REEs such as neodymium and praseodymium, crucial for EV motors and wind turbines  
- Mahindra & Mahindra and UNO Minda are keen to manufacture rare earth magnets, potentially integrating them into EV components and auto electronics  
- The incentive plan targets 4,000 tons of magnet production over seven years, with a two-year setup period and five years of fiscal support  
- To qualify, firms must source at least 50 percent of magnet value from locally produced oxide, rising to 80 percent by year five  
- India holds 8 percent of global REE reserves but contributes less than 1 percent to global mining, underscoring the need for domestic scale-up  

Strategic Context and Supply Chain Goals

- China controls 90 percent of global REE processing; recent export curbs have disrupted supply chains for Indian automakers  
- The initiative aims to support three to four large players and attract global partners seeking alternatives to China  
- State-owned Indian Rare Earths Ltd will supply key oxides, while Khanij Bidesh India Ltd explores overseas mining concessions  

Outlook

With industrial giants stepping up, India’s rare earth ambitions are transitioning from policy to execution—potentially reshaping its role in global clean tech supply chains.

Sources: Bloomberg, Economic Times, Goodreturns, MSN India, ET Auto, Discovery Alert, Business Standard, CareEdge Ratings, Indian Minerals Yearbook 2023