Copyright knnindia
New Delhi, Oct 27 (KNN) India’s plan to strengthen domestic production of rare earth minerals and magnets—crucial for electric vehicles, renewable energy, and high-tech manufacturing—faces a potential setback following China’s decision to tighten export rules on rare earth processing equipment. According to The Economic Times, Beijing’s Ministry of Commerce recently expanded export restrictions to include machinery and materials used in processing rare earth elements, such as centrifugal extraction and impurity-removal equipment. Exporters will now need special licences and must declare if their items could be used for both civilian and military purposes. China said the move is meant to “safeguard national security,” echoing earlier curbs on rare earth materials introduced this year. India, meanwhile, is preparing a Rs 7,300 crore incentive programme to promote local rare earth magnet manufacturing. The plan includes Rs 6,500 crore in capital support and Rs 800 crore for operational expenses, and aims to establish a fully domestic value chain—from processing minerals to producing sintered NdFeB (neodymium-iron-boron) magnets used in EVs, wind turbines, electronics, and defence systems. However, industry experts warn that China’s export controls could complicate India’s efforts. Much of the advanced machinery and technology required for rare earth processing is sourced from China, and alternatives from countries like Japan or Germany are considerably more expensive. This could drive up project costs and delay implementation. India’s scheme, expected to run for seven years, targets an annual output of 6,000 tonnes and aims to reduce dependence on imports. But with China currently accounting for 61% of global rare earth production and 92% of processing capacity, experts say Beijing’s latest move may slow India’s path to self-reliance in this strategically vital sector.
