Rare earths in India: Bridging the gaps to ensure sufficiency |
Last week, the Union Cabinet approved the “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets” with an outlay of ₹7,280 crore. The scheme will support several stages of the supply chain, among them the conversion of rare earth oxides to metals, metals to alloys, and alloys to finished magnets. This scheme only shifts the import reliance from Chinese magnets to Chinese rare earth oxides. The missing trick is recovering rare earths from end-of-life electronics. These discarded devices can form an essential pillar of supply security.
China controls approximately 70% of global rare earth mining and nearly 90% of refining capacity. This structural dominance was built through decades of subsidies and a willingness to absorb environmental costs that other countries would not. When western competitors tried to enter the market, Chinese State-backed firms flooded the markets with under-priced rare earths, forcing rivals into bankruptcy. India will have to fight China on these terms to compete in traditional mining and refining. Even with massive reserves, in the form of monazite sands, building refining capacity requires significant capital and an ability to absorb sustained initial losses. Furthermore, any such new plant would be exposed to volatile prices and Chinese market manipulation, which could quickly make it unviable, unless it is extensively hand-held through purchase guarantees and government subsidies.
That’s where urban mining comes in. India is the third-largest generator of electronic waste worldwide, producing between 1.75 and 3.8........