Author: Sethuraman NR
Feb 19 (Reuters) – India plans to start producing rare earth permanent magnets in partnership with the private sector by the end of this year, the federal mines minister said on Thursday, as the Asian country seeks to reduce imports of key industrial inputs.
New Delhi in November approved a 73 billion rupee ($802 million) plan to manufacture rare earth permanent magnets. These magnets are widely used in industries such as electric vehicles, aerospace, defense and renewable energy.
Minister Kishan Reddy told an event organized by the Federation of Indian Chambers of Commerce and Industry that the mines ministry and a state-run agency have developed technology to produce permanent magnets and plan to set up four key concentrators in various states.
India has the world’s third-largest rare earth reserves at 6.9 million tons, according to the U.S. Geological Survey, but only a fraction has been mined because of limited investment by private companies.
The country’s consumption of rare earth permanent magnets is expected to double by 2030, but the country mainly meets demand through imports.
China, which controls 90% of the processing of such magnets, limited shipments last year, leaving car companies scrambling to get supplies.
(1 USD = 91.0240 Indian Rupees)
(Reporting by Sethuraman NR in New Delhi; Editing by Mrigank Dhaniwala)
