India is exploring ways to develop its domestic rare earth industry after China’s export curbs led to global supply chain disruptions. The government has asked state-owned IREL (India) Limited to halt a long-standing agreement to export rare earth elements to Japan. However, this move may not be feasible due to the bilateral nature of the deal.
India is reportedly home to the fifth-largest rare earth resources in the world, mainly consisting of light rare earths. The country has existing facilities for mining, separation, and refining in oxide form, as well as metal extraction capabilities. Nevertheless, it lacks industrial-scale facilities to produce alloys, magnets, and other products from rare earths.
The Chinese export restrictions, which took effect in April, initially affected the automotive industry by causing production line shutdowns due to magnet and rare earth supply shortages. India was not immune to these disruptions and is now considering ways to boost its domestic rare earth processing capacities. The government is either launching production of rare earth magnets through IREL or collaborating with private sector entities to build such capacities.
As global demand for rare earths continues to rise, countries are racing to secure their own supplies and develop self-sufficient industries. India’s move to become more self-reliant in rare earths is an important step towards reducing its dependence on external suppliers and mitigating the impact of supply chain disruptions.
Source: https://oilprice.com/Latest-Energy-News/World-News/India-Looks-To-Keep-Domestic-Rare-Earth-Supply-at-Home.html