Amid China’s Rare-earth export controls, India is all set to roll out a National Critical Mineral Stockpile (NCMS) to secure rare-earth elements, that is significant for green technologies. The programme intends to create a two-month reserve and encourage participation from private players.
Rare-earth magnets power electric vehicles, wind turbines and other clean technologies
Rare earth elements, a group that comprises 17 chemically similar elements, are crucial for producing advanced technology applications, especially rare-earth magnets, which power electric vehicles, wind turbines, and other clean technologies. The initiative aligns with an earlier inter-ministerial approval of a Rs 7,300 crore incentive scheme to enhance domestic rare earth magnet production, setting the goal of 10,000 tonnes over the next five years. Not only this, but the government also allocated Rs. 500 crore, ensuring supply continuity and securing minerals for domestic use.
What did the industry experts note?
Significantly, the industry experts noted that China continues to limit rare earth magnet exports, despite initial signs of easing, whereas US President Trump has threatened an additional 100 percent tariff on Chinese imports, responding to these limitations.
India is estimated 7.23 million tonnes MT of rare earth oxide within 13.15 million tonnes of monazite, spread across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Gujarat, and Maharashtra. The Mines Ministry has completed five auction rounds for 55 critical mineral blocks, successfully allocating 34, and launched the sixth round last month to auction additional blocks. This strategic stockpile intends to protect India’s supply chain, boost domestic production, and decrease dependency on imports amid growing global competition for rare earth resources.