India’s Strategic Sprint: Building Rare Earth Independence Amid China’s Export Curbs

India is racing to reduce its deep reliance on China for rare earth magnets—materials crucial for electric vehicles (EVs), wind turbines, and defense technologies. The urgency comes after China imposed export restrictions on rare earth magnets, shaking global markets. As China controls roughly 70% of global rare earth mining and nearly 90% of the processing, this move has left countries like India scrambling to secure alternatives. For India’s EV manufacturers, who have about a month's worth of magnet stock, the risk is immediate.

To address this, India is fast-tracking a national plan to become self-reliant in rare earth materials. A major step includes supporting Hyderabad-based Midwest Advanced Materials Private Ltd (MAM), which has received government funding to begin manufacturing rare earth magnets domestically. The plant is set to start commercial production within six months, with an initial capacity of 500 tonnes per year. By 2030, this is expected to expand tenfold to 5,000 tonnes. Importantly, India Rare Earths Ltd (IREL) will supply raw materials, making the venture financially viable and reducing dependency on Chinese imports.

Beyond this, India is also planning to unlock magnet-making technologies developed by public sector units and explore commercial tie-ups with alternative rare earth-rich nations like Vietnam and the United States. As a short-term emergency move, Indian auto industry representatives may travel to China to speed up rare earth export clearances until domestic production stabilizes.

On the policy front, the Ministry of Heavy Industries is drafting a new incentive scheme to boost local magnet manufacturing. This includes subsidies and production-linked incentives to make Indian products price-competitive against cheaper Chinese imports. This effort aligns with the National Critical Mineral Mission launched in April 2025, which focuses on achieving mineral independence for strategic sectors like clean energy and defense.

Yet, despite having the world’s third-largest rare earth reserves—around 6.9 million tonnes—India has long underutilized its resources. A significant portion of domestic output has historically been allocated to atomic energy and defense sectors, leaving industries like automotive and electronics heavily reliant on imports. Private investment in mining and refining remains limited, largely due to high costs, environmental concerns, and regulatory bottlenecks.

To address these issues, India is intensifying rare earth exploration. The Geological Survey of India recently discovered promising deposits in Rajasthan and has launched 16 new exploration projects in 2025. However, most of these efforts are in early stages, meaning it may take years before they yield commercial-grade output.

To further reduce risk, India is strengthening international partnerships. Talks are ongoing with Vietnam, the U.S., and Kazakhstan to secure alternative supply lines and technological collaboration in mining and processing.

In summary, India’s mission to break China’s rare earth dominance is both ambitious and necessary. The country is taking a holistic approach—combining immediate stopgap measures with long-term capacity building and global partnerships. But success will depend on continued investment, rapid technology adoption, and a strong alliance between industry and government. Achieving rare earth independence won’t happen overnight, but India has made it clear that it’s no longer willing to be at the mercy of a single supplier—especially when it comes to materials that power its future.