MUMBAI: Back home, the Chinese ban on rare earth elements has notably impacted sectors like transport equipment, basic metals, machinery, construction, and electrical and electronics. However, the heavy industries ministry has proposed a rare earth magnet processing scheme with a financial allocation of Rs 1,345 crore with a view to increase domestic production and reduce imports on critical magnet components used in electric vehicles, electronics, and renewable energy.
The government has identified 30 minerals as critical for economic security. The SBI analysis shows that total imports of rare earth and compounds have averaged around $33 million annually over the past four years, with FY25 imports at $31.9 million.
Imports of rare earth magnets averaged $249 million over the past four years, reaching $291 million in FY25, the highest in this period, the report said. Direct use of rare earth is concentrated in six sectors, with significant absorption in basic metals and electrical and optical equipment. The use of rare earth magnets is mainly in automotive, electrical and electronics, and machinery sectors.
Rare earths are used in multiple sectors for varied applications: electronics-- TV screens, computers, cell-phones, silicon chips, long-life rechargeable batteries, camera lenses, LED, CFL, marine propulsion systems; manufacturing--high strength magnets, stress gauges, ceramic pigments, colorants in glassware, chemical oxidizing agent, automotive catalytic converters;
The magnets are also used in medical sciences--portable X-ray machines, MRI, contrast agents, nuclear medicine imaging, cancer treatment applications, and for genetic screening tests, medical and dental lasers; renewable energy--hybrid automobiles, wind turbines, next generation rechargeable batteries, biofuel catalysts; and technology--lasers, optical glass, fiber optics, masers, radar detection devices, nuclear fuel rods, mercury vapor lamps, highly reflective glass, computer memory, nuclear batteries, high temperature superconductors.