Reliance, Adani join India's push to cut China rare-earth dependence
What's the story
Reliance Industries, Vedanta and Adani Group are among 10 companies interested in setting up rare-earth processing plants in Andhra Pradesh, according to Reuters. The move is part of India's plan to reduce its dependence on China for these critical minerals. These minerals are vital for electric vehicle motors and other high-tech applications. The interest comes as New Delhi steps up efforts to build domestic rare earth mining, processing, and magnet manufacturing capacity.
Resource potential
Andhra Pradesh's rare earth reserves and investment plans
Andhra Pradesh has 211 million metric tons of beach sand mineral resources, including rare earths, in 16 identified coastal deposits. The state government is looking to attract ₹500 billion ($5.2 billion) in rare earth and titanium investments over the next decade. This is part of a larger plan to develop "corridors" for mining, processing and magnet production across four states identified in February's federal budget.
National resources
India's rare earth resources and processing gap
India has 482.6 million tons of rare earth ore resources, according to the Geological Survey of India. However, despite these substantial reserves, the country doesn't have industrial-scale facilities that can process these minerals to high purity levels. This gap is what companies like Reliance, Vedanta, and Adani are looking to fill by setting up processing plants in Andhra Pradesh.
Incentive scheme
Incentives for projects
Andhra Pradesh plans to issue tenders for these facilities. The state also plans to offer capital-linked incentives and other benefits for projects with investments of ₹10 billion or more. This is part of the state's strategy to attract large-scale investments, which have already drawn companies like Google and ArcelorMittal Nippon Steel.