India's Magnet Mission: Powering EV & Electronics Resilience

In a strategic effort to strengthen supply chain resilience for the electric vehicle (EV) and electronics industries, the Indian government is ramping up plans to boost domestic production of rare earth magnets. This initiative comes in response to China’s recent export restrictions, which have sparked global concerns over access to critical raw materials.

The government is currently assessing the capabilities of India Rare Earths, a public sector undertaking, to lead the development of rare earth magnet manufacturing. Public-private partnerships are also being explored to expand production capacity and reduce dependence on China, which currently controls a major share of the global rare earth market.

Commerce and Industry Minister Piyush Goyal recently acknowledged that China's curbs could cause short-term disruptions, particularly in India’s automotive and white goods sectors. On 10 June, the Directorate General of Foreign Trade (DGFT) held consultations with auto manufacturers to identify challenges in securing export licenses from China.

To build a resilient and self-sufficient supply chain in the medium to long term, the government is considering a production-linked incentive (PLI) scheme, along with additional subsidies and incentives to support domestic rare earth magnet manufacturing.

News by Rahul Yelligetti.