Kerala's rare earths power bid to cut China's magnet dominance

KOLLAM: State-owned Kerala Minerals and Metals Limited (KMML) is leading an initiative to set up a permanent magnet manufacturing plant in Kerala, a move that could strengthen India's domestic supply of a critical component used in defence equipment, satellites, electric motors, generators, mobile phones and wind turbines.

The Union government has invited tenders for setting up the plant to manufacture and supply permanent magnets at a fixed price. With China accounting for nearly 90 per cent of the world's permanent magnet supply, developing indigenous manufacturing capacity has become strategically important for India.

Southern Kerala's coastal mineral sands contain the rare earth elements required to produce permanent magnets, and KMML already possesses the mineral sand. However, the state-run company does not have the technology needed to manufacture the magnets.
To bridge that gap, KMML plans to form a consortium, subject to the state government's approval, with the Non-Ferrous Materials Technology Development Centre, a central institution that possesses the required manufacturing technology.

The proposed consortium will also include Thiruvananthapuram-based Travancore Titanium Products Limited, which will provide land for storing raw materials, and Keltron, which will handle the commercial sale of the finished magnets. Bringing these organisations together is expected to help the consortium meet the Centre's eligibility criteria and participate in the national tender.

The Centre has earmarked ₹7,280 crore for the programme, under which approvals are expected to be granted for seven manufacturing centres across the country. Of the total allocation, ₹1,500 crore has been set aside for construction of the plants, while the remaining amount will be provided as incentives for the manufacture and sale of permanent magnets.

The Ministry of Heavy Industries has received bids from 36 private agencies. The contracts will be awarded to bidders quoting the lowest price per kilogram. Permanent magnets currently sell for around ₹13,000 per kg.