Mahindra & mahindra: The country’s well-known automobile company Mahindra & Mahindra (M&M) and Auto Components, Uno Minda, are considering their plan to make rare meanings in India. A report by Reuters quoting government sources stated that this step has been taken by the Government of India after encouraging the reducing dependence on China for Rare Earth Magnets.

Preparation for an incentive scheme of 2500 crores

Let us know that the government is preparing to start an incentive scheme of up to Rs 2500 crore to promote the production of rare economy (rees) in the country. India is working rapidly in this direction so that China does not depend too much, which keeps its control over about 90 percent of the processing of more than 90 % rare meaning magnets in the world.

Amidst the trade war from the US, China banned the export of these magnets, which disrupted the global supply chain and has affected all the automobile companies. However, after the recent talks between President Donald Trump and Xi Jinping, its shipping has started again in the US and Europe, while India is still waiting for approval.

Both came together for the production of rees

According to media reports, some other companies like Mahindra have also shown interest in investing in production of rare mean magnets. However, it will take one or two years to start production. In a recent meeting with the Ministry of Heavy Industries, Mahindra allegedly stated that she is ready to partner for the work and sign a long -term supply contracts for local manufacturers. Uno Minda has also shown interest in it, which supplies parts for many more automobile companies like Maruti Suzuki.

Lack of rees not in India

Let us tell you that there is no shortage of rare meaning magnets in India. India has the fifth largest reserve of rare meanings magnets, but its processing and refining are still up to China. The responsibility of mining its mining in the country is currently on the government company IREL. In 2024, IREL produced about 2,900 tonnes of rare meaning magnets, most of which is used in the country’s nuclear and defense sector and also exported to Japan.

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Ever since China has imposed restrictions on the export of rare economy minerals, the industries around the world have been worried and India is also not untouched by it. But now the Government of India is going to take a big step, so that these necessary magnets can be made in the country itself.

What is the government’s plan?

According to the CNBC-TV18 report, the Government of India is going to promote manufacturing of rare economy magnets at the domestic level by spending around Rs 1000 crore. The Ministry of Heavy Industries and the Department of Atomic Energy are working together on this scheme.

It is being said that this scheme can be finalized in the next 10 to 15 days. Under this, 1500 tonnes of rare meaning magnets will be made in India every year. The entire blueprint of the scheme has not been revealed yet, but 5 to 6 companies have shown interest in it.

Why is this scheme necessary?

Rare Earth Magnets have become very important in today’s world, especially in automobiles and renewable energy sectors. Till now China has been ruling the whole world in this field. But when China reduced their export, there was a huge shortage of raw materials in India too. Therefore, now the goal of the Government of India is to make these magnets in the country itself, so that dependence on China is over.

Big role of India Rare Earth Limited

In this mission, India Rare Earth Limited will be given a big role. According to the report, this company will supply about 500 tonnes of raw material directly to manufacturers, so that the domestic industry can continue production without interruption.

There will also be a separate scheme for rare meaning minerals

Not only the rare meaning magnets, the government is also bringing separate schemes to increase the manufacturing of the rest of the rare meanings. Times of India reports show that for this, Rs 3500 to 5000 crore will be invested. Right now the government is doing its internal assessment, so that this project can be landed on the ground as soon as possible.

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Maruti Suzuki Shares: The shares of Maruti Suzuki, a large automobile sector company, saw a boom on Wednesday, June 18. The company’s share price reached Rs 12,841 with a jump of 2 percent. Actually, there is a big news behind this fast. It is being told that the Government of India is considering Australia for the Alternative Source of Rare Earth Magnets. That is, the government is now thinking about asking for rare meaning magnets from Australia so that the supply chain can be diversified and the dependence on China can also be reduced.

Negotiations going on with these countries also

India is also interacting with countries like Argentina, Brazil and Chile for the supply of Australia as well as rare meaning elements. In China, more than 60 percent rare meaning elements of the world are produced and 90 percent refining is also done in China. Ever since China has banned the export of rare economy elements, India has been interacting with many countries to strengthen its supply chain. At the same time, it is also trying to become self -sufficient in its processing.

Maruti Suzuki’s new electric vehicle

Last week, Commerce Minister Piyush Goyal had said that the Government of India is actively looking for options including diplomatic efforts and development of new supply chains. Negotiations are also going on with Chinese officials on this matter. The steps being taken by the government matters even more for Maruti Suzuki as India’s largest automker company is preparing to launch its first electric vehicle E-Vitara. Earlier last week, it was reported in the CNBC-TV18 report that due to lack of rare-economical magnets, it is delayed in launching it and negotiations are going on to reduce the production target.

Shares of Maruti Suzuki

Along with this, at around 10 am today, the company’s shares were trading at Rs 12,839 to climb 1.7 percent at the NSE at Rs 12,839. Since the beginning of the year, Maruti Suzuki shares have gained up to 19 percent.

However, it is also necessary to mention here that even though India is very dependent on China for Rare Earth Magnets and imports about 80 % of its need, but despite this, the impact of China’s ban on India’s auto stock was limited. This is because more than 95 % trains sold in India have internal combustion engines.

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