HD Kumaraswamy, Minister of Heavy Industry
In the midst of the rare earth crisis, India is investigating the sourcing from Australia, Brazil, Japan or Vietnam, in addition to stimulating local production via a subsidy scheme for industry in the next 15-20 days, said HD Kumaraswamy, Minister for Heavy Industry, on Tuesday.
“We are working on it [rare earth magnet crisis]. Midwest, a company established in Hyderabad, has shown interest and they focus on 500 tonnes of rare earth magnet production by this year and next year they strive for production of 5,000 tons, ”Kumaraswamy told reporters here.
High officials from the Ministry of Heavy Industries said that consultations with stakeholders are underway to determine the quantum of subsidy that should be offered in the context of the new scheme and, if the total incentives are more than £ 1,000 crore, the regulation is sent to the cabinet for approval.
The rare earth magnet crisis that began in April, damages the car -industry, which is highly dependent on China, a country that has a monopoly on production and has imposed restrictions on supplies.
Rare Earth magnets are Neodymium-IJzer drill (NDFEB). It is used for powerful car applications, such as traction engines in electric vehicles (EVs) and power steering engines on vehicle variants EV, gasoline and diesel.
The government’s subsidy scheme for the local production of magnets is part of a long -term plan to secure stocks. Indian Rare Earth Magnets Ltd, a unity of the public sector under the Ministry of Atomic Energy, is the only repository of rare earths in India.
“We do not yet know that the quantum of subsidy needed, the consultation of stakeholders is on … So there have been varied reactions. Someone wants 50 percent, someone wants 20 percent, so it will be subject to a competitive offer, then we will know the quantum of support,” said Kamran Rizvi, secretary, MHI.
Spmepci -portal
In the meantime, the MHI also launched the portal for accepting applications under the scheme to promote the production of electric passenger cars in India (SPMEPCI), which will remain open until October 21.
Rizvi said that MHI wrote to all countries with Automotive Majors, including Germany, the US, the UK, Czechoslovakia and their embassies for encouraging participation under the scheme.
Although Mercedes-Benz and Tesla are not interested in investing under the scheme, the MHI was hopeful that many other companies would show interest in the next four months.
Published on June 24, 2025
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