India scrambles for magnets as China tightens grip
The government intends to expand financial incentives for rare earth magnet production to more than 7,000 crore rupees, nearly tripling the program’s current size as officials seek to reduce reliance on Chinese suppliers of materials essential for electric vehicles, renewable energy equipment and defense technology. Beijing controls roughly 90 percent of global rare earth processing and tightened export restrictions this past April during escalating commercial disputes with Washington, disrupting automotive and clean energy manufacturers worldwide.
The enhanced production-linked incentive scheme targets private sector participation and local manufacturing growth while officials pursue partnerships with mineral-rich countries to secure raw material access. The PHD Chamber of Commerce and Industry recommended on Monday that authorities establish a dedicated department for critical minerals and pursue assertive diplomatic efforts to protect against supply chain disruptions. The business group advocated for cross-agency coordination and strategic reserves modeled after petroleum stockpiles maintained by the United States.
Analysts note that electric vehicles require six times more mineral content than gasoline-powered cars, while solar and wind installations demand triple the mineral inputs of conventional power sources. Scaling up magnet production would strengthen manufacturing capabilities and position the country within global clean energy and electronics supply networks.
