New Delhi: India’s state-owned miner IREL is seeking partnerships with Japanese and South Korean companies to launch commercial production of rare earth magnets, aiming to reduce dependence on China, a source familiar with the matter said. The company is exploring technology collaborations with both countries, potentially through government-to-government channels, the source added, requesting anonymity as discussions are not public.
IREL plans to formalise talks with other nations on rare earth mining and technology tie-ups and will seek board approval for magnet production later this year. IREL and the Department of Atomic Energy, which oversees it, did not respond to requests for comment, Reuters reported.
Japan link under exploration
India currently lacks commercial-scale facilities to refine and separate the full range of rare earth elements to high-purity levels. China, which dominates global rare earth mining, suspended exports of various rare earths and magnets in April, disrupting supply chains critical to industries such as automotive, aerospace, and semiconductors.
According to the source, IREL has approached Toyotsu Rare Earths India, a subsidiary of Japan’s Toyota Tsusho, to help connect with Japanese companies for rare earth processing. An initial meeting was held to explore engaging Japanese magnet manufacturers, with one proposal involving a Japanese firm establishing a plant in India. Toyota Tsusho, Toyotsu Rare Earths India, and Japan’s Ministry of Economy, Trade and Industry did not immediately comment.
Plans for global expansion
In June, Reuters reported that India directed IREL to suspend a 13-year-old rare earth export deal with Japan to conserve domestic supplies. The source said IREL could provide neodymium oxide to a technology partner, who would make the magnets and send them back to India.
IREL currently has the capacity to produce 400–500 metric tons of neodymium annually, with scope to increase output depending on collaboration terms. The company also plans to expand domestic rare earth mining and processing. Rare earth mining in India is restricted to IREL, which supplies the Department of Atomic Energy with materials for nuclear and defence uses. The company is also assessing mining opportunities in Argentina, Australia, Malawi, and Myanmar, the source said.
