While Japan relies primarily on China for its rare earth supply, India is a significant supplier and IREL shipped over 1,000 tons of rare earths to the country last year.
IREL is aiming to build up India’s rare earth processing capabilities in light of recent trade disruption, and the company is now seeking to retain more of its output for domestic use and to expand both mining and processing within India. IREL is currently awaiting statutory clearances for four new mining projects.
India holds the world’s fifth-largest share of earth reserves, around 6.9 million metric tons, but lacks the processing and manufacturing capabilities of countries like China. That’s had a major impact on Indian automakers, for example, who have been feeling the impact of Beijing’s restrictions on rare earth mineral and magnet exports, with car production now coming under threat.
For India, rare earth exports from China have remained frozen, and although 20 export applications are currently pending, none have been approved.
Consequently, the Indian government is now looking to prioritise domestic capabilities in terms of mining, processing, recycling and manufacturing when it comes to rare earth elements and magnets that are critical to so many sectors of the economy.
