Centre discusses strategy for rare earth magnets, China import concerns
What's the story
The Prime Minister's Office (PMO) held a high-level meeting to discuss India's strategy and preparedness for rare earth magnets, according to CNBC-TV18. The meeting was attended by senior officials from the Department of Heavy Industries and the Ministry of Mines. This comes after India faced a major disruption in imports of these critical components from China (its main supplier), since April 2025.
Sectoral impact
Reducing dependence on single source
The halt in rare earth magnet imports from China has raised concerns, especially in the automotive and electronics industries. These sectors heavily rely on these critical inputs. The PMO meeting reviewed pending import applications with Chinese authorities and delays in regulatory clearances. It also discussed a broader policy approach to reduce dependence on a single source and accelerate the development of an alternative supply chain for rare earths.
Incentive scheme
Meeting reviewed proposed ₹1,345 crore incentive scheme
The PMO meeting also reviewed a proposed ₹1,345 crore incentive scheme to boost domestic manufacturing of rare earth magnets. The scheme is aimed at encouraging private players to invest in rare earth processing and magnet production capabilities within India. The officials discussed the status of inter-ministerial consultations on this scheme as part of their deliberations during the meeting.
Strategic planning
Roadmap to develop mining, refining, and manufacturing infrastructure
The PMO meeting also discussed a long-term roadmap to develop India's rare earth mining, refining, and manufacturing infrastructure. This includes identifying viable rare earth reserves and ensuring regulatory coordination between the Center and the states. The meeting also emphasized building institutional and technical capabilities for magnet production. Further detailed inter-ministerial discussions are expected soon as a follow-up to finalize actionable policy steps.
Strategic significance
Aim to secure position in global rare earth value chain
Rare earth elements (REEs) such as neodymium, praseodymium, and dysprosium are essential for high-performance magnets used in electric vehicles (EVs), renewable energy equipment, and defense technologies. The latest meeting indicates that the government is not just looking to tackle immediate supply disruptions but also planning a long-term strategy to secure India's position in the global rare earth value chain.