India’s state-owned miner IREL is in discussions with Japanese and South Korean firms to launch commercial production of rare earth magnets, a person with knowledge of the matter said, as the country looks to diversify supply chains and reduce reliance on China.
The company is exploring partnerships to secure rare earth processing technology, potentially through government-to-government channels, the person said, declining to be named because the talks are not public. IREL aims to seek board approval for a commercial magnet production venture later this year.
“India has the raw material, but scaling up to high-purity magnet production needs technical know-how that we are looking to source from partners in Japan and South Korea,” the person said.
India currently lacks commercial-scale refining facilities to produce the full range of high-purity rare earth elements. China, which dominates global rare earth production, suspended exports of a broad range of rare earth products and related magnets in April, disrupting supply chains in sectors including automotive, aerospace and semiconductors.
IREL has approached Toyotsu Rare Earths India, a unit of Toyota Tsusho, to facilitate outreach to Japanese magnet manufacturers, the person said. One option being discussed involves a Japanese company establishing a production facility in India. Toyota Tsusho and Toyotsu Rare Earths India did not immediately respond to requests for comment.
The state miner, which produces 400–500 metric tons of neodymium annually, is prepared to supply neodymium oxide to a technology partner that would manufacture magnets abroad and return them to India. The output could increase under new agreements, the person said.
IREL also plans to expand domestic rare earth mining and processing capacity and is exploring potential mining projects in Argentina, Australia, Malawi and Myanmar. In India, rare earth mining is restricted to IREL, which also supplies the Department of Atomic Energy with materials for nuclear and defence applications.
Source: Reuters