National Critical Mineral Stockpile (NCMS) Initiative
The government is preparing to launch the National Critical Mineral Stockpile (NCMS), a program designed to ensure the availability of rare earth elements within India.
Background and Motivation
- China's decision to impose export curbs on rare earth magnets has disrupted global supply chains.
- Rare earth elements are essential for various green technologies such as electric vehicles and wind turbines.
Program Details
- Aim to create a two-month stockpile of rare earth elements.
- Initial focus on rare earth elements, with plans to expand to other critical minerals.
- Encouragement of private sector participation in the program.
Rare Earth Elements
- Comprise a group of 17 elements with similar chemical traits.
- Valued for unique magnetic and electrical properties, particularly in rare earth magnets.
Government Initiatives
- A ₹7,300 crore incentive scheme approved to promote rare earth magnet production, targeting 6,000 tonnes over five years.
- Under the National Critical Minerals Mission, ₹500 crore allocated to safeguard against supply disruptions.
Challenges and Industry Insights
- India’s technological capacity to extract domestic rare earths is limited, with most supplies imported.
- India's estimated reserves include 7.23 million tonnes of rare earth oxide within 13.15 million tonnes of monazite.
Strategic Auctions
- Five tranches of auctions conducted, with 55 critical mineral blocks offered and 34 successfully awarded.
- The sixth tranche of auctions recently launched for additional blocks.