India’s ₹5,000 Crore Investment to Reduce Dependence on China for Rare Earth Minerals

To counter the challenges posed by China’s dominance in rare earth mineral processing, India is planning a substantial investment. A scheme, estimated at ₹3,500 to ₹5,000 crore, is being developed to stimulate domestic production of rare earth minerals and related magnets. This strategic investment aims to bolster India’s self-sufficiency in the face of China’s significant control over the global market, particularly in the context of EV production and other industries heavily reliant on these minerals. This investment is a direct response to the issues around the halt of rare earth mineral processing by China. The official said that the incentives would be provided through a reverse auction. The government is also planning to amend the mines and minerals act. Simultaneously, the government is aiming to initiate commercially viable production of rare earth permanent magnets domestically within the current year. The plan is to help the new industry to move towards self-dependence and reduce dependence on Chinese imports.