IREL Eyes Japan, South Korea Partnerships for Rare Earth Magnet Output

• IREL is in talks with Japan and South Korea for rare earth processing tech and magnet production to cut reliance on China
• Plans include supplying neodymium oxide for magnets, with capacity to grow beyond 400–500 metric tons annually
• Exploring mining in Argentina, Australia, Malawi, and Myanmar while boosting domestic capabilities

India's state run miner IREL is speaking with Japanese and South Korean companies to start commercial production of rare earth magnets to lessen reliance on China, according to a contact with knowledge of the negotiations. The negotiations apparently could go government-to-government, with caution to the aim to take a stake in rare earth processing technology in Japan and South Korea.

IREL is anticipating to have the establishment of international partnerships as well as interest in rare earth mining and technology formalized this year, where board approval for magnet production will be obtained. India does not possess commercial scale facilities to either refine or separate the full range of rare earth elements to the highest purity level.

This reality is more pronounced because after China suspended certain rare earth and rare earth based magnets in April, after controlling over 60% of all global rare earth mining, globally supply chains important to industries like automotive, aerospace and semiconductors were disrupted.

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The miner has approached Toyotsu Rare Earths India, which is the Toyota Tsusho unit, for help in coordinating with Japanese companies for rare earth processing. While proposals are still underway, there is a possibility of a Japanese company establishing a facility in India for magnet production.

IREL could provide neodymium oxide to the technology partner, who would manufacture the magnet and bring that back to India. Currently, there is a neodymium production capacity of 400–500 metric tons annually, with room for growth per new agreements. In June, India told IREL to stop a long-standing rare earth export agreement with Japan for the purpose of conserving domestic supplies.

The company is also pursuing new mining possibilities in Argentina, Australia, Malawi, and Myanmar, as well as looking to increase its domestic mining and processing capacity. As the only authorized company for rare earth mining in the country, IREL supplies the Department of Atomic Energy for nuclear and defense programs, in addition to trying to make the country a competitive player in the rare earth value chain.