Import of Rare Earth Elements by India
India is actively seeking to import crucial rare earth elements, specifically dysprosium and terbium, to advance its domestic magnet production, while 10 applicants are awaiting rare earth licenses from China.
Key Rare Earth Elements Required
- Neodymium and praseodymium: Essential for permanent magnets used in electric motors, wind turbines, and electric vehicles (EVs).
- Dysprosium and terbium: Heavy rare earth elements vital for applications needing heat resistance and durability, like EV motors and industrial devices.
Current State and Challenges
India lacks extractable quantities of dysprosium and terbium and is heavily reliant on imports for these HREEs, though it has some REEs like lanthanum and cerium.
Negotiation and Trade Efforts
- The Indian embassy is coordinating with China, with nearly 40 applications pending clearance.
- No government officials will be part of the Indian delegation aiming for discussions in Beijing.
- Negotiation strategies may include pushing for dysprosium and terbium if previous trading status with China isn't restored.
Processing and Global Dynamics
- China processes 90% of rare earth materials; Malaysia and Vietnam handle another 7-8%.
- Global demand could challenge India’s access to processed magnets from Malaysia and Vietnam.
- Transporting REEs for processing outside China could increase costs and time (3-4 weeks).
Industry Perspective
Importing motors continues without restrictions, yet securing a steady supply of rare earth materials remains critical for manufacturing automotive parts within India.