India to manufacture rare earth magnets locally due to Chinese supply cut
The South Asian nation possesses the world's third-largest reserves of rare earths, but less than 20% has been explored so far.
'It is proposed that there will be two manufacturers as of now, but this could change by the time the scheme is ready,' India's Minister of Heavy Industries and Steel H.D.Kumaraswamy has said, according to the website.
An official at the ministry said the subsidy will be available to manufacturers that undertake end-to-end processing, from rare earth oxides to magnets.
The proposed scheme aims to support both private companies and public sector enterprises by providing incentives to establish domestic capacity across the entire value chain.
India Rare Earth Limited, a government-backed company, is set to play a crucial role by providing about 500 tons of rare earth raw materials to original equipment manufacturers involved in magnet production, the Moneycontrol report said.
Billionaire Anil Agarwal's Vedanta Group, JSW Group and EV parts maker Sona BLW Precision Forgings Ltd. are among those who have expressed an interest in this initiative, according to a report by Bloomberg.
New Delhi has stepped up its efforts to make the magnets that are used in electric vehicles, generators and hard drives, after Beijing announced export restrictions in April. China presently dominates the global market, accounting for around 60% of the world's supply of rare earth magnets.
Under China's revised rules, its exporters are required to secure licenses and submit end-use declarations that confirm that materials will not be used in the defense industry or get re-exported to the US.
Indian industry experts have called on the government to support the manufacturing of the component, which is also crucial for the renewable energy sector.
In the 2024-25 fiscal year, the South Asian nation imported 53,748 tons of rare earth magnets, according to the Economic Times.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Russia Today
4 hours ago
- Russia Today
Japan's ruling coalition loses majority for first time in 31 years
The ruling coalition of Japanese Prime Minister Shigeru Ishiba has lost control of the upper house of the National Diet, making it a minority in both chambers of the country's parliament. It is the first time since 1994 for Japan's ruling parties to lose majority control of both houses. Ishiba's Liberal Democratic Party (LDP) and its junior coalition partner Komeito lost 19 seats in Sunday's election, falling short of the threshold needed to control the 248-member House of Councilors. With 122 seats, they are now three short of a majority. The ruling camp had already suffered a heavy blow earlier this year when it lost control of the lower chamber of the Diet after Ishiba announced a snap election in the House of Representatives amid a party corruption scandal. The main opposition party – the Constitutional Democratic Party of Japan – maintained its 22 seats. The biggest opposition gains came from the center-right conservative Democratic Party For the People (DPP) and the ultraconservative populist Sanseito, which each won 13 seats. The DPP has gained traction with calls to limit taxes to mitigate the impact of Japan's rising inflation, while Sanseito has lobbied for a 'Japanese First' push to limit immigration into the country. The parties now control 17 and 14 seats, respectively. Despite calls from his party to resign, Ishiba has vowed to remain in office and engage with the opposition, describing the situation as a 'national crisis.' At a press conference on Monday, he pledged to promote wage increases to counter rising prices and to engage US President Donald Trump directly to negotiate a trade deal. The defeat comes at a difficult time for Japan as it contends with inflation and the looming prospect of Trump's 25% tariffs on Japanese goods, which are set to take effect on August 1. Washington is also reportedly pressuring Tokyo to take a stance against China in any potential conflict over Taiwan. Moscow has condemned US-led military drills involving Japan and South Korea in the region as a destabilizing influence.
Russia Today
9 hours ago
- Russia Today
The quiet Asian engagement everyone should be watching
In mid-July, Indian Foreign Minister Subrahmanyam Jaishankar visited China for the first time in nearly six years, underlining a tentative yet important reset in relations between Asia's two major powers. Jaishankar met with Chinese President Xi Jinping, Foreign Minister Wang Yi, and Vice-President Han Zheng in Beijing. Although the visit did not bring about a radical breakthrough, it did mark a significant step toward restoring top-level engagement and inching toward normalization. This effort comes at a symbolic moment – the 75th anniversary of the establishment of diplomatic relations between the two nations – and reflects a broader duality: a blend of gradual rapprochement alongside enduring strategic competition. Jaishankar, who since 2019 has represented the moderate and pragmatic wing within India's foreign policy establishment, continues to advocate for cooperation with China and broader engagement in multilateral institutions such as the Shanghai Cooperation Organization (SCO) and BRICS. His presence in Beijing was emblematic of India's effort to rebalance its approach to its complex relationship with its northern neighbor. The relevance of Sino-Indian relations extends far beyond bilateral dynamics. China and India are the world's two most populous countries, belonging to fastest-growing economies. Both are ancient civilizations and increasingly influential actors in the rising Global South. As such, their ability to manage tensions and cultivate areas of cooperation carries profound implications for regional and global order. Recently, there have been meaningful achievements in the bilateral relationship. Political dialogue and high-level engagement have resumed, contributing to greater border stability through new measures. Exchanges in various sectors and regional connectivity initiatives have intensified. Economic interdependence remains strong, and coordination between the two countries in multilateral platforms such as the SCO and the United Nations has become more robust. A landmark event occurred in October 2024, when Chinese President Xi and Indian Prime Minister Narendra Modi met in Kazan. This meeting marked the beginning of a new phase of engagement. Notably, the positive trajectory of relations was not disrupted by the India-Pakistan conflict in May – a testament to the growing political will on both sides to deepen ties. Economic interaction also continues to flourish. In 2024, China reclaimed its position as India's top trading partner, surpassing the United States after a two-year hiatus. Bilateral trade reached $118.4 billion, a 4% increase from 2023. These figures underscore a deepening interdependence that provides both leverage and incentive for sustained dialogue. From Beijing's perspective, the deterioration in relations over the past few years is seen as abnormal. Chinese officials have consistently promoted the idea of improvement across multiple dimensions. India is frequently described in Chinese discourse as a fellow ancient Eastern civilization, and the bilateral relationship has been metaphorically referred to as the 'dragon-elephant tango,' a symbolic framing that seeks to capture the potential harmony between the two powers. China sees India as an indispensable actor in the Global South and advocates for a bilateral relationship that is not directed against any third party – mirroring the same language used in reference to China's strategic partnership with Russia. Both China and India promote the vision of a multipolar world, multilateralism, and economic globalization. In this context, parallels are drawn between Xi's vision of 'a community with a shared future for mankind' and Modi's concept of 'Vasudhaiva Kutumbakam' ('the world is one family'), which is rooted in ancient Indian philosophy and emphasizes harmony and interconnectedness. The Chinese-launched Global Civilization Initiative also seeks to revive pre-modern cultural frameworks and plurality of civilizations, aligning conceptually with similar trends in India. During his meetings in Beijing, Jaishankar reiterated India's principle of strategic autonomy and its independent foreign policy – an approach that resonates with China's own diplomatic posture. He described India and China as development partners rather than rivals, countering dominant Western narratives that frame China-India relations largely through the lens of competition and threat. The triangular dynamic involving the US complicates the picture. Current pressures from Washington – particularly the shared risk of a trade war and the volatility of US foreign policy – act as a common concern for both New Delhi and Beijing. India, China, and other BRICS nations are facing increased scrutiny from the White House and NATO Secretary General Mark Rutte, who have threatened secondary sanctions over continued economic ties with Russia. These external pressures may inadvertently bring China and India closer together, as both seek to safeguard their strategic autonomy and development trajectories. Historically, the US has sought to exploit gaps between India and China in a bid to prevent closer cooperation. That strategy may be less effective in an era where both Beijing and New Delhi are increasingly conscious of the need to define their relationship on their own terms. Despite these positive trends, substantial challenges remain. Chief among them is the unresolved boundary dispute, which remains the most sensitive and complex issue in the bilateral relationship. The Galwan Valley clash in 2020, which resulted in around two dozen fatalities, caused a severe deterioration in ties. However, the June 2025 visit of Indian Defense Minister Rajnath Singh to China signaled a renewed willingness to seek a permanent resolution. Trade-related frictions also persist. India faces restrictions on the import of rare earth magnets from China, which are crucial for strategic and industrial sectors. Intermittent Chinese export controls disrupt Indian manufacturing and deter Chinese foreign direct investment. Conversely, India restricts Chinese investment citing national security concerns, has banned several Chinese apps, and conducted raids on Chinese companies. Geopolitically, the competition for regional influence continues to strain relations. China's growing presence in South Asia and the Indian Ocean clashes with India's strategic interests, especially in countries like Bhutan, Nepal, Pakistan, and Sri Lanka. India has consistently refused to join the Belt and Road Initiative (BRI), largely due to its opposition to the China-Pakistan Economic Corridor (CPEC), which runs through contested territory. Plans for massive infrastructure projects such as the construction of the world's largest dam on the Yarlung Zangbo river, which flows into India, remain points of tension. To move beyond these obstacles, it is essential to build a stable and effective border trust mechanism. Restoring strategic dialogue platforms and enhancing multi-level security cooperation are indispensable steps toward creating a mature and resilient bilateral relationship. What is required is long-term, sustained, and measurable interaction supported by enduring political will, pragmatic consultative frameworks, and – above all – mutual respect for each other's core interests. At a more practical level, the two countries could reconsider the potential of the China-Nepal-India Economic Corridor (CNIEC). Proposed by Beijing in 2018 and backed by Kathmandu, the CNIEC envisions greater connectivity and economic integration across the Himalayan region. Though India has so far rejected the proposal, revisiting it could offer shared economic and strategic benefits. Another concrete step would be the restoration of military exercises, which were launched in 2007 but suspended after 2019. Renewed military cooperation would enhance strategic trust and transparency. Additionally, greater coordination in hydro-political domain is vital. Seven major rivers originate in China's Xizang region and flow through India. This creates both risks and opportunities for the two nations. While a full normalization of China-India relations may still be distant, the latest developments point toward a cautious but real shift. In a global context marked by uncertainty, polarization, and geopolitical realignment, the two Asian giants have much to gain from pragmatic engagement and mutual respect. The dragon and the elephant may still step on each other's toes, but their carefully choreographed tango is once again underway.
Russia Today
10 hours ago
- Russia Today
Putin speaks of threat to Russian sovereignty
Russia would inevitably lose its sovereignty if it relies solely on oil and gas revenues and abandons domestic production in favor of imports, President Vladimir Putin has said. In an interview with journalist Pavel Zarubin released on Sunday, Putin defended Russia's decades-long effort to localize automobile manufacturing, saying it was essential for protecting the country's economic and political autonomy. He recalled that in the 1990s many of his government colleagues wanted to abandon efforts to develop the car industry and instead rely on foreign-made vehicles, a view that he opposed. 'We must talk about technological independence… If we buy everything with the oil and gas [revenues] – and now they [the West] are trying to cut us off from oil and gas – then Russia will simply lose its competitiveness, and with it, its sovereignty,' he said. According to Putin, efforts to improve the domestic car industry began with cooperation with Western partners that were licensed to build assembly plants in Russia. Starting in the early 2010s, the authorities gradually tightened localization requirements, demanding that automakers produce more components domestically. 'This was serious work. We were essentially creating our own cars,' Putin remarked, adding that the effort paid off after the escalation of the Ukraine conflict in 2022, which saw an exodus of Western companies from Russia as Kiev's backers introduced sanctions against Moscow. Russia sold about 1.571 million new passenger cars in 2024 (up 48%), with Lada accounting for roughly 28% (436,155 units) and remaining the market leader, according to the analytical agency Autostat. However, all others spots in the top ten were occupied by Chinese brands. Russia's Kamaz also distributed the most trucks in the country last year, despite an overall drop in sales, the agency said. Putin has personally promoted the domestic automobile industry and has often been seen driving Lada and Kamaz vehicles. He also uses a limousine from the Russian luxury brand Aurus as his presidential car. In 2024, he gifted Aurus limos to North Korea's Kim Jong‑un and Bahrain's King Hamad bin Isa Al Khalifa.
