Summary:

India has asked state-run Indian Rare Earths Limited (IREL) to restrict rare earth exports to Japan under a long-standing arrangement, with the goal of meeting domestic demand and reducing dependency on China. Commerce Minister Piyush Goyal advocated the protection of important elements such as neodymium, which is essential for electric vehicle motors. Exports were formerly justified by insufficient processing capacity, but current Chinese export limitations underline the importance of self-reliance. In 2024, IREL shipped more over 1,000 of its 2,900 tonnes of production to Japan.

Toyo's Rare Earths India, a subsidiary of Japan's Toyota Tsusho, now processes India's rare earths. Although India has the world's fifth-largest rare earth deposits (6.9 million metric tonnes), the country lacks local magnet manufacturing and imported 53,748 tonnes in FY25, primarily from China. IREL intends to generate 450 tonnes of neodymium in FY26, and treble that by 2030. To increase self-reliance, India is providing incentives and seeking partnerships for local processing and magnet manufacture.

Source: IBEF

Disclaimer:The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions, and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness, and usefulness.