Rare earth menerals: Lack of rare meaning magnets can affect not only the auto industry, but also the electronics industry. Rare Earth Magnet is used to make speakers. Now the prices of products like home theater, headphones, ear buds and TVs may increase. After prohibiting the export of China’s rare meaning magnet, the electronics sector is also worried along with the auto industry. This industry depends largely on the rare economy. It is also used in devices such as electric motors and sensors. Rare Earth Magnet is ranked up to 5-7 percent of the built on material cost of these things. According to experts, this can also affect their prices.
Significantly, about 95 percent rare economy is imported from China. So far, China has not taken any decision on exporting magnets. This can be expensive by rectanging from other countries. The government is preparing to bring an incentive scheme to promote domestic origin. But it may take time to increase production. Experts believe that in such a situation, the government should also pay attention to other options. Auto companies are avoiding production due to lack of rare economy. They have only supplies till July. If the matter is stretched long, electronic production can also be affected.
Meanwhile, news has come that the government can bring special incentive schemes to increase rare meaning magnet production in the country. The government has prepared a draft regarding this. The government can bring a special incentive scheme of Rs 5,000 crore for Rare Earth Magnet Production. This scheme can be for 3 years. The scheme is expected to get approval from the government in 2 weeks. Like this scheme, incentives will be given through reverse auction. The government has a focus on increasing the production of rare meaning magnets in the country. This decision is possible to reduce dependence on China. India has a stock of about 6.9 million tonnes of rare minerals.
