Rare earth crisis: Indian companies hopeful as global panic sets in
With global automobile majors raising concern over rare earth elements and the magnet crisis owing to export curbs by China, auto firms in India are putting on a brave face and expecting a solution soon. This is because the government is considering fiscal incentives for domestic production and increasing long-term stockpiles of rare earth magnets.
Around 30 applications from India are stuck at various stages of approval, and that is threatening production halts and inventory depletion. “Some European majors like Volkswagen have got permits. But no Indian player has got nod so far. We expect a solution soon,” said an industry source. Despite this, sources said industry majors had told the government that production might be affected in six to eight weeks. In addition to sectors like automotive, defence, and energy, where these rare earth elements and magnets are widely used, makers of medical equipment too are worried.
