India's rare earth push aims to reduce reliance on imports: Report
Consulting firm Primus Partners has published a paper called "From Extraction to Innovation," which lays out a plan to ramp up domestic capabilities in critical rare earth magnets, as part of the government's overall aim to build domestic development.
Policy vision versus ground reality
The report lays out five recommendations that, on paper, create a roadmap for India. These comprise long-term price guarantees on neodymium-praseodymium (NdPr) oxide and NdFeB magnets, pilot hubs in our mineral abundant states, ramping up of production at Indian Rare Earths Limited (IREL), a national magnet stockpile and a central coordination cell with NITI Aayog or DPIIT.
It also suggests a National Rare Earth Innovation Hub to encourage research and global technology partnerships. Collectively, these concepts offer a systematic methodology, but they also highlight just how much of India's rare earth plans are only beginning.
Also Read : China+1 strategy boosts India's role in global auto component supply chains: Reports
Small steps forward
Recent actions reflect intent but also the magnitude of the deficit. The Union Budget 2024–25 granted customs duty exemption on essential minerals, indicating policy encouragement. And last year, IREL commissioned a Rare Earth Permanent Magnet (REPM) facility in Visakhapatnam. At ₹197 crore and with an annual capacity of 3,000 kg, the facility is a milestone — yet modest when compared to global production volumes.
Global dependence remains entrenched
The elephant in the room is still China. Controlling nearly 90 per cent of global rare earth magnet production, Beijing's dominance has left supply chains vulnerable to policy shifts and export restrictions. India, despite its mineral potential, is still far from matching that scale. Exploration projects in Jammu & Kashmir, Rajasthan, Jharkhand and Karnataka have begun, while Khanij Bidesh India Limited (KABIL) is seeking overseas tie-ups. But these are long-gestation efforts.
Rising demand, sharper risks
The pressure is only set to grow. India has set a target of 30 per cent EV penetration by 2030 and net-zero emissions by 2070. Each EV requires up to 2 kg of NdFeB magnets, and demand could cross 7,000 tonnes by 2030, according to the report. This demand goes beyond mobility — renewable energy, automation, and defence all compete for the same resources.
The irony is clear: India's clean energy transition could become dependent on a resource it does not yet control. The roadmap offers direction, but unless mining, refining, and manufacturing capabilities are scaled up quickly, India risks swapping one form of energy dependence for another.
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