Production of Rare Earth Magnets (REPM) by Year End
Context:
The Union Mines Minister recently announced that India will commence the production of Rare Earth Permanent Magnets (REPM) by the end of this year.
This move is part of a broader strategy to create an alternative supply chain and reduce reliance on a single country.
Key Developments & Domestic Technology:
The Non-Ferrous Materials Technology Development Centre (NFTDC), based in Hyderabad, has successfully developed the domestic technology for REPMs.
This technology is now being provided to private companies to initiate manufacturing.
The central government has approved a Rs 7,280 crore scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets.
The scheme aims to establish a domestic integrated capacity of 6,000 metric tonnes per annum (MTPA), covering the entire value chain from rare-earth oxides to finished magnets.
Applications of REPM’s:
High-strength REPMs are crucial for a wide range of technologies, from electric vehicles and renewable energy systems to electronics, aerospace, and defence applications.
Strategic Importance:
Currently, manufacturing is highly concentrated, with China controlling over 90% of both the processing of raw materials and the manufacturing of these magnets.
High-strength REPMs are essential for critical sectors including Electric Vehicles (EVs), renewable energy systems, electronics, aerospace, and defence.
Steps Taken for Supply Chain Resilience:
Exploration Push:
Under the National Mineral Exploration Trust (NMET), the government is providing 100% funding to 41 notified private exploration agencies, including startups, to undertake exploration work.
The scope of NMET has also been expanded to fund overseas projects.
Identified Hubs:
Four states - Andhra Pradesh, Odisha, Gujarat, and Maharashtra—have been identified to promote the setting up of critical mineral processing plants.
International Cooperation:
India is working on a roadmap with France and has held discussions with the US (joining the US-led FORGED initiative on critical minerals) to secure the supply chain.