Rare Earth Magnet Scheme
Rare Earth magnets: From your smartphone to electric vehicles to the defense equipment that protects the country, a small but extremely powerful thing is used – rare earth magnets. This is that magical magnet, without which today’s world of technology is incomplete. But the matter of concern is that till now only one country, China, has monopolized the market of this magical magnet. But now this picture is about to change. The Indian government is working on a powerful plan that will not only directly challenge China’s dominance in this field, but will also make India a major global producer and supplier of it. It is reported that India is preparing to increase its incentive program almost three times to Rs 7,000 crore, so that the production of these powerful magnets can start in the country itself.
Why was there a need for this ‘magnetic’ revolution?
In fact, today almost all the China at 90% Rare Earth Magnet It is stamped with. This means that the world’s biggest automobile and technology companies are dependent on China. China has many times used this power as a weapon on the global stage. Recently, amid trade tensions with America, China tightened its export rules, which created a supply crisis for companies around the world. Prime Minister Narendra Modi had also clearly said some time ago that essential minerals should not be used as weapons against anyone. With this thinking, India is now taking this big step towards creating a stable and reliable supply chain, so that the world does not have to face any such arbitrariness in future.
How will the picture of India change?
This ambitious plan of the government is not just in the air, but a concrete blueprint is being prepared for it. According to sources, this proposal may soon get cabinet approval. Earlier, a budget of about 290 million dollars (about Rs 2,400 crore) was kept for this scheme, but now it is being increased to more than Rs 7,000 crore. This huge amount will be used to help about five big companies through production-linked incentives (PLI) and capital subsidies. Its direct objective is that the world’s big magnet manufacturing companies should set up their factories in India or start working in collaboration with Indian companies. This will not only create employment opportunities in the country, but we will also not need to import magnets from China for electric vehicles, wind energy and defense equipment.
It is necessary to break China’s technological maze
However, as big as this goal is, the challenges in its path are equally big. The first and biggest challenge is technology. China still has the most advanced technology for making rare earth magnets. Second, mining these minerals is economically very expensive and complex. Besides, these minerals also contain some radioactive elements, due to which there is a risk of harming the environment. Apart from this, there is a shortage of skilled experts for this field in India. The government understands this, that is why it is also exploring the possibilities of partnerships for mining in foreign countries.
Another big challenge is that if China eases its export rules for India like America and Europe, then there will be a flood of cheap Chinese magnets in the market. In such a situation, it may be difficult for India’s new industry to survive. Despite all these challenges, the government is also conducting research on alternative technologies like synchronous reluctance motors, so that our dependence on these magnets can be reduced in future. This scheme can prove to be a milestone in the direction of realizing India’s dream of becoming ‘self-reliant’.
Also read- 5 countries of the world where there is treasure of rare earth, know how far behind is India in this race?