Minister says India aims to produce rare-earth permanent magnetic magnets by the end of the year

India hopes to produce rare earth permanent magnets by the end of this year, in partnership with the private sector. The 'federal mining minister' said that on Thursday.

New Delhi approved in November a programme to manufacture permanent magnets made of rare earths worth 73 billion rupees ($802 millions). Magnets are used in industries from aerospace and electric vehicles to renewable energy and defence.

Minister Kishan Reddy announced at an event organized by Federation of Indian Chambers of Commerce & Industry that the mining ministry has partnered with a state-run organization to 'develop technology for permanent magnets.

According to the U.S. Geological Survey, India's rare earth reserves are the?third largest in the world at 6,9 million tons. However, only a fraction of this is mined because?private firms?make limited investment.

The country's demand for rare earth permanent magnets will?double in 2030. However, the country meets this demand mostly through imports.

Last year, China, which controls 90%?of the processing of these?magnets?, limited shipments, forcing automobile manufacturers to scramble for supplies.

(source: Reuters)