Are There No Cost Increases or Project Delays in Maharashtra Due to Rare Earth Shortages?

Synopsis
Key Takeaways
- Export restrictions on rare earth magnets have not led to cost increases or project delays in Maharashtra.
- The Indian government is engaging stakeholders to address supply chain disruptions.
- India has substantial reserves of rare earth elements across various states.
- Critical minerals are essential for sectors like electric vehicles and renewable energy.
- No current proposals to boost domestic production of rare earth magnets.
New Delhi, July 25 (NationPress) The recent enforcement of export limitations on vital rare earth magnets has caused supply chain disruptions affecting various industries, particularly the automobile and electronics sectors. However, the Parliament was informed on Friday that there are no indications of cost increases or project delays from industries in Maharashtra.
In a written response during the Rajya Sabha session, Union Minister of State for Commerce and Industry, Jitin Prasada, stated that the ministry has not received any specific reports concerning escalated costs or project delays linked to the scarcity of rare earth magnets from companies situated in Maharashtra’s Aurangabad-Nashik-Pune auto belt and the electronics clusters in Mumbai and Navi Mumbai.
When questioned about the establishment of an inter-ministerial task force or a mission-mode initiative aimed at diminishing India’s reliance on China for rare earth materials, or the possibility of a Production-Linked Incentive (PLI) scheme to encourage domestic manufacturing of rare earth magnets, the minister remarked that "currently, no such proposal is being considered".
The government is proactively collaborating with relevant stakeholders to tackle the challenges posed by the export restrictions on rare earth magnets imposed by certain countries, aiming to ease supply chain disruptions and protect the interests of Indian importers.
According to government sources, India possesses about 7.23 million tonnes (MT) of Rare Earth Elements Oxide (REO) contained within 13.15 MT of monazite (a mineral containing Thorium and Rare Earths) found in coastal regions and inland areas across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. An additional 1.29 MT of rare earths are situated in hard rock formations in Gujarat and Rajasthan.
Furthermore, the Geological Survey of India (GSI) has increased the resources of REE ore to 482.6 MT across various cut-off grades within 34 exploration projects. Over the last decade, the quantity of rare earth minerals exported has reached 18 tonnes, while there have been no recorded imports of these minerals.
Critical minerals such as lithium, graphite, cobalt, titanium, and rare earth elements are highly sought after due to their essential roles in various sectors, including electric vehicles, renewable energy, and defense.