Context:
India is finalizing a ₹3,500–5,000 crore incentive scheme to boost the domestic production of rare earth minerals and magnets, critical for electric vehicles (EVs), renewable energy, and defense applications. The scheme is expected to be approved within the next fortnight, according to a senior government official.
Key Highlights
- Incentive Mode: Benefits will be offered through a reverse auction mechanism, encouraging efficient cost discovery and competition.
- Objective: Reduce dependence on Chinese imports, enhance supply chain resilience, and ensure critical mineral security.
Rare Earth Elements (REEs):
- REEs are a group of 17 metallic elements, including the lanthanides, scandium, and yttrium.
- They are known for their unique magnetic, fluorescent, and conductive properties.
- While not extremely rare in abundance, they are difficult and costly to extract and refine.
Rare Earth Magnets:
- Definition: These are permanent magnets made from alloys of REEs.
- Types: Neodymium (NdFeB) and samarium-cobalt (SmCo) magnets are the most common.
- Strength: They produce much stronger magnetic fields compared to other types of magnets.
- Applications: Widely used in electronics, electric vehicles, wind turbines, and various industrial applications due to their high energy density and ability to generate strong magnetic fields in compact sizes.
- Considerations: Rare earth magnets can be brittle and susceptible to corrosion, so they are often coated or plated.
