India has begun to increase the local production of rare country magnets aimed at significantly reducing their dependence on China for these vital electric vehicles.
The Indian government is planning a motivational program worth up to 25 billion rupees ($ 290 million), which draws interest on the clutch of large private companies that produce these magnets.
The policy plan is expected to be submitted for approval of the cabinet, although the final expenses can be changed, Bloomberg said.
Prominent players show interest
Among those who have shown interest in this initiative are among the billionaire Anil Agarwal’s Vedanta Group, Sajjan Jindal-Kledaná JSW Group and EV parts Sona BLW Precision Forgings Ltd.
The aim of India is to support three to four large companies to produce about 4,000 tons of rare soil magnets using local raw materials for seven years.
Ensuring Supplier chains in the middle of geopolitical tension
India is developing this effort after China, which controls about 90% of the world’s rare countries, has tightened the exports of rare countries in the middle of the US trade war, which led to disruption of supply chains for global car manufacturers, including those who operate in India.
Also read | China still suffocates the export of rare countries despite the contract
Prime Minister Narendra Modi mentioned the importance of ensuring critical minerals at the BRICS rally in Rio de Janeiro and said, “It is important to ensure that no country uses these resources for its own selfish profit or as a weapon against others.”
Scope of program
The plan includes a two -year period of pregnancy, while incentives were led for five years after the start of production, Bloomberg reported
India with a rapidly growing electric vehicle industry is considering investing up to 6 billion rupees for every 1,000 tonnes of capacity.
According to the proposed plan, the company will offer annual production capacity in the range of 500 tons and 1,500 tons, the press agency reported.
Also read | Indian puzzle of rare countries: no quick repair because China holds a magnetic key
In order to qualify for manufacturers, they must meet strict standards, including the requirement that half the value of the final product must come from the locally produced oxide non-denkumium-praseedymia, a component essential for the production of high-performance magnets.
The requirement for domestic sourcing will rise to 80% of the fifth year of production, the report added.
Is this ambitious plan achievable?
Although the government is putting great pressure on locally produced rare countries, its budget is minimal and the timeframe remains ambitious because mines and processing facilities can take years. Another limitation is that the know-how remains strongly concentrated in China.
Despite their name, rare soils are not really geologically rare. However, economic mining is difficult and may be bad for the environment due to their connection with radioactive elements.
Also read | Research of rare soil mining to get grants
While India has long tried to strengthen the production of rare country either on domestic or overseas projects, these efforts remain emerging.
This is because the production of magnets in India without subsidies is almost impossible. The necessary oxide is supplied by the state -owned Indian Rare Earths Ltd. And the return on investment in this sector is negative because there is no capital or operating subsidy, the press agency reported.
(Tagstotranslate) Magnets of rare country
