What's so rare about rare earth magnets
NEW DELHI: China has decided to lift the curbs on export of rare earth magnets to India, in a relief to industries, such as automobiles (especially electric vehicles manufacturing), renewable energy (wind turbines), consumer electronics, defence and aerospace, and healthcare.
What's the meaning of rare earth magnets?
Rare earth magnets are the strongest type of permanent magnets commercially available. Their high magnetic strength and resistance to demagnetisation make them indispensable in a range of applications, especially where weight and space are constraints. According to experts, these magnets are made primarily from rare earth elements like neodymium, praseodymium, and dysprosium - materials that allow for powerful magnetic properties essential in miniaturised and energy-efficient devices.
They are typically made from alloys that contain rare earth elements.
The most commonly used rare earth magnet is the neodymium-iron-boron (NdFeB) magnet.
What's the China angle to rare earth magnets?
China is estimated to account for about 70% of global rare earth metals mining and holds nearly 90% of the world's rare earth magnet production. Widespread usage of these rare earth magnets has started over the past six-to-eight years, owing to factors, such as their compact size, weight, high effectiveness and high thermal resistance in comparison to normal ferrite/traditional magnets.
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One of the biggest reasons that China dominates the global rare earth magnet industry is its control over the entire supply chain, including:
Mining of rare earth ores
Separation and refining of rare earth elements (a complex and environmentally sensitive process)
Alloy production and magnet manufacturing
In the Indian auto industry, about 870 tonnes of rare-earth magnets are required to be imported in 2025-26 out of the country's estimated overall requirement of 3,600 tonnes.
Auto industry has been hit the most by curbs imposed by China
Component suppliers in India have been importing these magnets as raw materials to manufacture components/sub- assemblies domestically for automotive applications.
Such rare earth magnets are used across applications both for Internal Combustion Engine (ICE) vehicles and Electric Vehicles (EVs) for components like speedometer, electric motors, e-axle, electric water pump, automatic transmission kits, speakers, sensors and ignition coils in engines.
As China placed restrictions and mandated a highly structured process for importing them (which no company could clear), most of the companies raised the red flag - saying that production will need to be stopped and launches will be delayed.
The relaxation by China will bring massive relief to the industry, especially with high-demand festive season around.
India's plans to achieve self-sustainability
Till the time local mining, ore and magnets production arrangements are done, companies are requesting govt to facilitate import from non-China-based sources, such as from Vietnam, Brazil, and Russia.
Long-term plan
To become self-reliant in the production of rare earth magnets over a three-to-five year period, India needs to establish a complete domestic value chain. Financial incentives, linked to production and policy support, are required to encourage companies to invest in high-technology areas. Govt needs to encourage local mining and production of magnets for reducing dependence on China through incentives. Financial and policy support may be provided to encourage public-private partnerships in setting up rare earth processing facilities and magnet production clusters across the country.
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