In a landmark shift signaling India’s rare-earth awakening, the government has taken decisive steps to conserve domestic neodymium resources, restructure its export policies, and scale up local magnet production. This comes at a critical time when global supply chains are strained and demand for neodymium — the powerhouse metal behind electric vehicles, wind turbines, and military drones — is skyrocketing.
đź”’ India Halts Neodymium Exports to Japan
Earlier this month, India’s state-owned IREL (India Rare Earths Limited) was directed to suspend a long-standing export agreement with Japan’s Toyotsu Rare Earths, originally signed in 2012. This move reflects India’s urgent desire to prioritize domestic use of rare earths over foreign commitments, particularly in light of China’s tightening export controls on rare-earth processing technologies.
The target is clear: retain neodymium for Indian EV, defense, and renewable energy sectors, where local manufacturers are currently dependent on imports — often at volatile prices and uncertain supply.
🏠Building India’s Magnet Infrastructure
India is not just stopping at export controls. The government is preparing a rare-earth magnet production policy that includes:
- Production-linked incentives (PLI) to attract magnet manufacturers
- Tariff exemptions for importing specialized machinery
- Subsidies and tax breaks for setting up oxide refining and sintered magnet plants
- Dedicated buffer stocks of critical materials like neodymium and praseodymium
The goal? Achieve 450 tonnes of neodymium oxide capacity by FY2025–26, and double that by 2030. If successful, India would begin closing the gap with China, which currently dominates 90%+ of global magnet supply chains.
♻️ Recycling and Joint Ventures Rise
With fresh mining projects still years away from full production, Indian firms are turning to recycling and partnerships to ease the supply crunch. Notable developments:
- Attero Recycling and Lohum are expanding e-waste-based neodymium recovery
- U.S.-based ReElement Technologies has announced a JV with Exigo Recycling to launch India-based oxide processing
- Several automotive and electronics majors are exploring closed-loop recycling programs for rare earths
These measures not only address supply risk but also contribute to India’s sustainability targets.
🧠A Strategic Realignment
This pivot is part of India’s broader National Critical Mineral Mission, which includes ₹1,500 crore (~$180M USD) in support for:
- Rare-earth exploration and processing
- R&D in magnet design and testing
- Environmental and mining policy reform
With a focus on EVs, wind energy, aerospace, and defense, the government is creating the ecosystem for a self-reliant rare-earth economy.
⚡ What This Means for You
Whether you’re in manufacturing, clean tech, or electronics:
- Expect local sourcing options for high-grade neodymium magnets in the next 2–3 years
- Watch for falling magnet prices as India’s domestic capacity comes online
- New startup and JV opportunities in magnet processing, coatings, and recycling
- India’s geopolitical leverage increases as it becomes a rare-earth alternative to China
🔍 Final Thoughts
India’s neodymium story is evolving from one of dependence to one of strategic control and innovation. By halting exports, ramping up local production, and incentivizing domestic recycling, the country is laying the groundwork for a magnet-powered industrial revolution.
Stay tuned to Neodymium.in for updates on policy shifts, new projects, and the future of rare-earth tech in India.