Priyanka Tiwari
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Suspense crime, Digital Desk : The Indian government is taking decisive steps to reduce its critical dependence on China for rare earth permanent magnets (REPMs), essential components for a wide range of modern technologies. Amid potential supply chain disruptions, the Ministry of Commerce is actively exploring agreements with alternative countries to ensure a stable supply for India's growing industrial needs.
Rare earth magnets, particularly neodymium magnets, are the powerhouse behind many 21st-century innovations. They are indispensable for manufacturing electric vehicles (EVs), wind turbines, smartphones, computers, medical equipment, and sophisticated defense systems.
Currently, India's position is highly vulnerable. China dominates the global market, controlling over 90% of the production and supply of these powerful magnets. This near-monopoly poses a significant strategic risk, making India's high-tech and green energy sectors susceptible to supply shocks and geopolitical tensions. At present, India’s domestic production is negligible, forcing it to rely almost entirely on Chinese imports.
To counter this, the government is engaging in discussions with friendly nations that have capabilities in rare earth mining or processing. Countries like Japan and Australia are being considered as key potential partners for creating a resilient and diversified supply chain.
This initiative is a crucial part of India's broader "China Plus One" strategy and its push for 'Atmanirbhar Bharat' (self-reliant India). Securing a consistent and reliable supply of rare earth magnets is not just a trade consideration; it is fundamental to achieving India's national goals for economic growth, technological advancement, and national security. The global market for these magnets is projected to nearly double by 2030, underscoring the urgency of this strategic pivot.
