Meetings underway to mitigate Rare Earth magnet crisis: Heavy Industries Minister H D Kumaraswamy

India is exploring options to mitigate the crisis due to rare earth magnet supply disruptions, Union Heavy Industries Minister H D Kumaraswamy said Tuesday.“We are working on it (addressing the rare earth magnet crisis). Midwest, a Hyderabad based company, has shown interest. They are targeting 500 tonne rare earth magnet production by this year end, aiming for 5000 tonne production in the next,” Kumaraswamy told journalists Tuesday.At the sidelines, officials said an incentive scheme for rare earth magnets is likely to subsidise processing units. India’s own rare earth magnet production is also anticipated in the coming two years.Indian automobile players had red-flagged curbs on supplies of rare earth derived permanent magnets.Responding to queries on the current situation, a senior official said, “As of today, things look better. Nobody has come back to us saying I am halting production.”His comments follow meetings of Chinese Foreign minister, Wang Yi with India’s National Security Advisor, Ajit Doval.In a statement, a Spokesperson of China's Foreign Affairs Ministry said, “China and India should adhere to the important consensus that both sides are opportunities for each other’s development, pose no threat to one another, and are partners rather than rivals.”Officials said Indian companies can also import fully assembled components from China with no restrictions. “Existing government incentive schemes such as those for auto component and electric vehicle manufacturing already have exemptions for allowing these imports,” the official added.Besides importing minerals, India is also preparing to incentivise domestic processing of rare earth supply chains. Explaining the need for incentives, the official said, “There is a hardly 5% difference in the prices of rare earth oxides and rare earth magnets…China wants to maintain its monopoly by keeping the price of magnets very low.”According to official estimates, public sector undertaking IREL (India) can supply enough rare earths to make 1500 tonnes of magnets.“Converting these rare earths to magnets will take two years,” the official added.Kumaraswamy also launched the application process for Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). This scheme offers lower duties for import of high-end electric cars if automobile majors invest in India.Commenting on how participation is being drawn towards SPMEPCI, the official said, “We are writing to embassies of countries which have established automotive industries, encouraging them to participate in the scheme.”Invitations will be extended to Vietnam, Germany, Czech Republic, United Kingdom, and United States of America, the official added.