India Boosts Rare Earth Magnet Output to Counter China Export Curbs

• India boosts rare earth magnet production to cut import dependence.
• C-MET partners with Somal Magnets for local manufacturing.
• China’s export curbs trigger supply disruptions, driving urgency.

India is amplifying its efforts to establish domestic capacities in rare earth magnet production as global supply chains face pressure from China's tighter export controls.

 At the Tec-Verse event hosted by MeitY, Amitesh Sinha, Additional Secretary of MEITY, indicated the emerging collaboration between government, industry, and academia in being able to produce these magnets to be competitive, whilst being aware that there is existing technology, with the challenge now being commercial feasibility.

Amitesh Sinha said, "Technology is there, but we have to see how commercially we can do it at a competitive price. So that is the main challenge. The government will surely work because these things are now becoming strategic and important".

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During this event, C-MET (Centre for Materials for Electronics Technology), which is a MeitY organization, signed a technology transfer agreement with Somal Magnets, which is located in Ahmedabad, and will begin local production. While MeitY (or C-MET) would not produce the magnets directly, they will provide the technology necessary for the production of the magnets.

Rare earth magnets, specifically neodymium-iron-boron (NdFeB), are vital in electric vehicles, electronics, and industrial machinery. Currently India imports almost all NdFeB, with roughly 90% from China. Since April 2024, China has reduced export licenses for its strategic minerals, including the commercial rare earth elements terbium and dysprosium, impacting global supply and increasing costs.

Alternatives from Japan and the EU are expensive and cannot support India's requirements. Industry groups indicated this as a risk to EV, electronics and various industries. The Indian government is focusing on increasing domestic production with the goal of reducing vulnerability during times of crisis. 

India is also looking to work with China to relieve necessary supply pressure. It is also speaking with industry partners to mark risk. Commerce Minister Piyush Goyal recently referred to China's actions as a "wake-up call", recognizing India’s future is in being a global trade partner.