Amid China’s rare-earth export controls, India’s plan to strengthen domestic production of rare earth minerals, which is a significant material for electric vehicles and high-tech industries, may hit an obstacle. Since Beijing’s latest decision to impose rare-earth export controls is raising concerns among Indian industry leaders and government officials, in the Rs 7,300 crore incentive scheme.
China’s Ministry of Commerce increased the export controls to include machinery and materials used for producing and processing rare-earth elements. These export controls include centrifugal extraction machines and intelligent impurity-removal equipment, significant for processing ionic rare earth ores.
The report stated that exporters of such products will now require special licences and must announce whether items civilian or military purposes. China stated that this move is intended to protect national security, resonating with similar measures introduced earlier this year on medium and heavy rare-earth materials.
India’s plan faces cost hurdles due to rare-earth export controls
The govt. cleared an incentive programme through the expenditure finance committee, intending to encourage local production of rare-earth magnets with operational costs of Rs.6,500 crore for capital support. However, industry experts mention that newly introduced Chinese rare-earth export restrictions could complicate India’s plans. Hence, the equipment and technology required for processing the rare-earth minerals come from China. Depending on other countries could not be a good alternative since that is going to be far more expensive, leading to an increase in the project costs.
The key objective behind developing this value chain that could transform Ndpr(Neodymium-praseodymium) oxide into sintered NdFeB (neodymium-iron-boron)magnets. Since these are significant for automobiles, electronics, wind energy, and defence.
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