India is looking to source critical minerals from the likes of Peru and Chile as part of the proposed trade deals with them, a senior government official said on July 15.
“One is resources, we are also doing our free trade agreements (FTA) with countries like Chile, Peru, they are part of this exercise, our FTA strategy to see that rare earth magnet dependency is not there in few nations,” this official said.
Critical minerals such as lithium, nickel and graphite are considered vital for high-end technology products including electric vehicles (EVs), drones, and battery storage. China has been a dominant player in the critical minerals supply chain globally.
“Critical minerals and critical minerals processing technology, we have faced some issues in rare earth magnet used in several sectors. We are aware that we have to diversify for our imports so that dependency on certain countries come down, so we are not only able to process but also manufacture these minerals, this official said.
The official added that India is also looking at those countries that do not manufacture but have processing technologies for critical minerals like Japan and South Korea.
This at a time when the Indian government has drafted a scheme to offer subsidies worth Rs 1,345 crore to manufacturers of rare earth magnets in the country, Union minister for heavy industry and steel HD Kumaraswamy said on July 11.
The move came after China imposed export restrictions in April this year on seven rare earth elements and finished magnets. Under the revised rules, Chinese exporters must secure licences and submit end-use declarations confirming materials won’t be used in defence or re-exported to the US.
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