As China's control over exports of rare earth magnets continues to impact supplies across the world, government sources have told CNBC-TV18 that India is looking to hedge supply chain risks by exploring alternative sourcing destinations like Australia, Argentina, Brazil, and Chile.
Currently, China produces around 60% of the global supply of rare earth magnets, and processes around 90% of the supply, including sourcing of raw materials from other countries.
Government sources said that accelerating output from the National Critical Minerals Mission (NCMM) along with recycling via a circular economy, is being increasingly looked at to boost domestic availability.
Also Read: India considering rare earth magnet production via govt PSU, private firms: Sources
Pointing to Africa's support for China in trade and supply of raw materials, government sources added that increased sourcing of Lithium from Chile is vital for India's plans to convert 50% of all new vehicles into EVs by 2030.
On June 17, Union Minister of Coal and Mines G Kishan Reddy held an inter-ministerial meeting with Union Minister for Heavy Industries and Steel HD Kumaraswamy and officials from the Ministries of Atomic Energy, Steel, Heavy Industries, and Commerce. Deliberations were held on a wide range of aspects to secure supply chains for REEs and on strengthening the value chain from mining to refining to end use.
While China tops the REE deposits at 44 million tonnes (MT), the US Geological Survey pegs India's deposits at 6.9 MT, which is the third largest in the world, next to Brazil. An EY report has indicated that India is host to over one-third of the global sand mineral deposits which can be used for sourcing REEs.
While non-PLI measures to support local industry may be considered, India is also looking to augment the supply of critical minerals by subjecting all mineral waste to testing, including from the Petroleum sector, to extract whatever deposits of critical minerals are available.
Also Read: Inter-ministerial efforts on rare earth magnets to pave way for India's self-reliance: Kumaraswamy
Earlier, CNBC-TV18 had reported that India is evaluating ways to leverage REE production via the government-owned Indian Rare Earths (IREL). Minister for Commerce and Industry Piyush Goyal has described China's pause on REE exports as a wake-up call for the world.
Starting June, all Indian mines have been mandated to conduct testing for critical minerals from their dumps. The move involves testing of overburden, waste dumping, tailings, and rejects, which are often regarded as mineral waste after the process of mining is completed. Earlier this year, India had mandated the declaration of existence of critical minerals even for minor mineral leases.
The move, aimed at maximising exploration, identification, scientific extraction, and production of critical minerals, had classified Barytes, Felspar, Mica, and Quartz as major minerals. Until then, the leases of Quartz, Felspar, and Mica were granted as minor mineral leases, implying that lease holders neither declared the existence of critical minerals nor extracted them, as their primary objective was to use them as minor minerals for construction, and glass/ceramic making, etc. Consequently, the critical minerals associated with these minerals were neither getting extracted nor reported.
Currently, China produces around 60% of the global supply of rare earth magnets, and processes around 90% of the supply, including sourcing of raw materials from other countries.
Rare earth elements (REE) and processed minerals are extensively used in heavy industries, robotics, batteries, and military equipment.
Government sources said that accelerating output from the National Critical Minerals Mission (NCMM) along with recycling via a circular economy, is being increasingly looked at to boost domestic availability.
Also Read: India considering rare earth magnet production via govt PSU, private firms: Sources
Pointing to Africa's support for China in trade and supply of raw materials, government sources added that increased sourcing of Lithium from Chile is vital for India's plans to convert 50% of all new vehicles into EVs by 2030.
On June 17, Union Minister of Coal and Mines G Kishan Reddy held an inter-ministerial meeting with Union Minister for Heavy Industries and Steel HD Kumaraswamy and officials from the Ministries of Atomic Energy, Steel, Heavy Industries, and Commerce. Deliberations were held on a wide range of aspects to secure supply chains for REEs and on strengthening the value chain from mining to refining to end use.
While China tops the REE deposits at 44 million tonnes (MT), the US Geological Survey pegs India's deposits at 6.9 MT, which is the third largest in the world, next to Brazil. An EY report has indicated that India is host to over one-third of the global sand mineral deposits which can be used for sourcing REEs.
While non-PLI measures to support local industry may be considered, India is also looking to augment the supply of critical minerals by subjecting all mineral waste to testing, including from the Petroleum sector, to extract whatever deposits of critical minerals are available.
Also Read: Inter-ministerial efforts on rare earth magnets to pave way for India's self-reliance: Kumaraswamy
Earlier, CNBC-TV18 had reported that India is evaluating ways to leverage REE production via the government-owned Indian Rare Earths (IREL). Minister for Commerce and Industry Piyush Goyal has described China's pause on REE exports as a wake-up call for the world.
Starting June, all Indian mines have been mandated to conduct testing for critical minerals from their dumps. The move involves testing of overburden, waste dumping, tailings, and rejects, which are often regarded as mineral waste after the process of mining is completed. Earlier this year, India had mandated the declaration of existence of critical minerals even for minor mineral leases.
The move, aimed at maximising exploration, identification, scientific extraction, and production of critical minerals, had classified Barytes, Felspar, Mica, and Quartz as major minerals. Until then, the leases of Quartz, Felspar, and Mica were granted as minor mineral leases, implying that lease holders neither declared the existence of critical minerals nor extracted them, as their primary objective was to use them as minor minerals for construction, and glass/ceramic making, etc. Consequently, the critical minerals associated with these minerals were neither getting extracted nor reported.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!