{"id":1388,"date":"2025-11-04T05:13:06","date_gmt":"2025-11-04T05:13:06","guid":{"rendered":"https:\/\/newsraise.com\/in\/?p=1388"},"modified":"2025-11-04T05:13:06","modified_gmt":"2025-11-04T05:13:06","slug":"modi-governments-plan-on-rare-earth-mining-cut-china-dependence","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2025\/11\/04\/modi-governments-plan-on-rare-earth-mining-cut-china-dependence\/","title":{"rendered":"Modi Government&#8217;s Plan on Rare Earth Mining; Cut China Dependence"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<h2 data-start=\"296\" data-end=\"796\"><em>India is preparing a major expansion of its rare earth magnet manufacturing programme, according to a Bloomberg report. <\/em><\/h2>\n<p data-start=\"296\" data-end=\"796\">The government is considering nearly <strong data-start=\"545\" data-end=\"614\">tripling the incentive package to over INR 70 billion (almost $788 million)<\/strong> \u2014 a substantial three-fold jump from the earlier <strong data-start=\"653\" data-end=\"674\">$290 million plan, <\/strong>that focused primarily on securing critical minerals for electric vehicles, renewable energy, and defence applications.<\/p>\n<h3 data-start=\"798\" data-end=\"834\"><strong>A Push to Cut China Dependence<\/strong><\/h3>\n<p data-start=\"836\" data-end=\"1252\">The proposed expansion marks <a href=\"https:\/\/newsraise.com\/in\/2025\/10\/22\/modi-trump-trade-breakthrough-big-tariff-cuts-ahead\/\">India\u2019s strongest effort yet to build a self-reliant rare earth ecosystem, <\/a>a sector currently dominated by China, which processes almost 90% of the world\u2019s rare earth output. The move comes amid global efforts by countries including the U.S., Japan, and members of the European Union to diversify their supply chains after <strong data-start=\"1196\" data-end=\"1249\">China tightened export controls earlier this year<\/strong>.<\/p>\n<p data-start=\"1699\" data-end=\"2014\">As per Bloomberg\u2019s official report, the <a href=\"https:\/\/newsraise.com\/in\/2025\/10\/22\/modi-trump-trade-breakthrough-big-tariff-cuts-ahead\/\">PM Modi led governmen<\/a>t plans to extend financial support to around five companies through a mix of production-linked incentives (PLI) and capital subsidies. The goal is to attract both domestic and foreign investors to establish manufacturing and processing facilities within India.<\/p>\n<p data-start=\"1699\" data-end=\"2014\">While state-owned enterprises are exploring partnerships with overseas miners to secure access to key raw materials, the country continues to lag in refining and processing capabilities \u2014 areas where <a href=\"https:\/\/newsraise.com\/in\/2025\/10\/03\/india-china-direct-flights-resume-from-oct-26-2025-after-4-years\/\">China<\/a> remains unmatched.\u00a0Interestingly, Beijing has recently approved the first licences for importing rare earth magnets into India, but none have been granted to Indian-origin companies yet. Officials at India\u2019s Ministry of Heavy Industries have so far declined to comment on the development.<\/p>\n<h3 data-start=\"2628\" data-end=\"2681\"><strong>Strategic Minerals and Environmental Challenges<\/strong><\/h3>\n<p data-start=\"2683\" data-end=\"3086\">China\u2019s continued dominance in key magnet materials such as <strong data-start=\"2743\" data-end=\"2795\">neodymium, praseodymium, dysprosium, and terbium<\/strong> underscores the urgency for India to scale up. These minerals are essential for making magnets used in <strong data-start=\"2899\" data-end=\"2969\">electric vehicles, wind turbines, electronics, and defence systems<\/strong>. However, mining them presents environmental challenges since they often occur alongside radioactive elements.<\/p>\n<p data-start=\"3088\" data-end=\"3417\">India\u2019s strategy involves not only <em>expanding production<\/em> but also <em>investing in advanced technologies<\/em> that could help reduce dependence on these minerals altogether. The government is funding research on <em>synchronous reluctance motors,<\/em> which could potentially replace rare earth magnets in electric vehicles in the future.<\/p>\n<h3 data-start=\"3419\" data-end=\"3452\"><strong>Attracting Global Investors<\/strong><\/h3>\n<p data-start=\"3454\" data-end=\"3855\">Global suppliers have already expressed interest in supplying rare earth materials to India, whose annual demand stands at roughly <strong data-start=\"3585\" data-end=\"3611\">2000 tonnes of oxides<\/strong> (20,00,000 kgs)\u2014 a quantity easily met by global producers. Officials expect to lure major international magnet manufacturers to establish joint ventures or subsidiaries in India, strengthening domestic value chains.<\/p>\n<p data-start=\"3857\" data-end=\"4087\">However, analysts warn that India\u2019s push could face headwinds <em>if <\/em><em>China eases export restriction<\/em>s for other markets, including India, making <a href=\"https:\/\/newsraise.com\/in\/2025\/10\/03\/india-china-direct-flights-resume-from-oct-26-2025-after-4-years\/\">Chinese magnets cheaper and reducing the incentive<\/a> for investors to produce locally.<\/p>\n<p data-start=\"4089\" data-end=\"4498\">Despite these uncertainties, experts agree that India\u2019s move marks a <strong data-start=\"4158\" data-end=\"4229\">critical step toward energy security and technological independence<\/strong>. With global demand for rare earth magnets projected to surge in the coming decade, consistent policy support, international collaboration, and technology transfer will be crucial to positioning India as a meaningful player in the global rare earth supply chain.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>India is preparing a major expansion of its rare earth magnet manufacturing programme, according to a Bloomberg report. The government is considering nearly tripling the&#8230;<\/p>\n","protected":false},"author":4,"featured_media":1389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299],"tags":[765,768,772,770,773,764,767,766,771,769],"class_list":["post-1388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-china-dependence","tag-critical-minerals","tag-defence-industry","tag-electric-vehicles","tag-india-energy-security","tag-india-rare-earth-magnet-manufacturing","tag-pli-scheme","tag-rare-earth-incentives","tag-renewable-energy","tag-rosneft-and-lukoil-sanctions","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=1388"}],"version-history":[{"count":1,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1388\/revisions"}],"predecessor-version":[{"id":1390,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1388\/revisions\/1390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/1389"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=1388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=1388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=1388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}