India Targets Rare-Earth Permanent Magnet Production by Year-End

India aims to start producing rare-earth permanent magnets by the end of the year in partnership with the private sector, the federal mining minister said, as the Asian country seeks to lower imports of critical industrial inputs, Reuters reported.

India has the world's third-largest reserves of rare earths at 6.9 million tons. (Photo: Gregory F. Maxwell, Wikimedia Commons) 

New Delhi approved a 73 billion rupee ($802 million) rare-earth permanent magnet manufacturing program in November.

The magnets are used in industries ranging from electric vehicles and aerospace to defense and renewable energy.

The mining ministry and a state-run body have developed the technology to produce permanent magnets, with plans to set up four critical mineral-processing plants across as many states, minister Kishan Reddy said at an event organized by the Federation of Indian Chambers of Commerce & Industry.

India has the world's third-largest reserves of rare earths at 6.9 million tons, according to the US Geological Survey, but it mines only a fraction due to limited private-sector investment.

The country's consumption of rare-earth permanent magnets is expected to double by 2030, but it currently meets most of its demand through imports.

China, which controls 90% of the processing of such magnets, restricted shipments last year, sending automobile companies scrambling for supplies.