6 days ago
L&T Plans Rare-Earth Magnet Production as India Cuts China Reliance
Larsen & Toubro, or L&T, may start making special magnets in India.
These magnets are important for electric cars, wind turbines, robots and electronics.
India wants to make more of them at home instead of importing them.
China currently produces about 90% of the world’s supply.
China also restricted exports of these magnets in April last year.
The Indian government created an incentive programme worth ₹7,280 crore to encourage production.
L&T is preparing a bid but has not yet been confirmed as a programme winner.
It may need a technology partner because making the magnets requires very precise engineering.
Fifteen bids have reportedly been submitted so far.
Larsen & Toubro is preparing to bid for India’s ₹7,280 crore rare-earth magnet incentive programme.
The company may need a technology partner with specialized high-precision engineering expertise.
The programme has received 15 bids, including one from Proterial Ltd. and two Indian auto makers.
L&T’s potential move would expand it beyond construction, heavy engineering and industrial projects.
Rare-earth magnets support electric-vehicle motors, wind turbines, industrial robots and electronics, while China controls about 90% of global output.
- Who
- Larsen & Toubro, the Indian government and other bidders, including Proterial Ltd. and two Indian auto makers.
- What
- L&T is preparing a bid to manufacture rare-earth magnets in India under a government incentive programme.
- Where
- India; the article identifies China as the dominant global producer.
- When
- The report does not specify when L&T would begin production; it says China restricted exports in April last year.
- Why
- India is seeking to reduce import dependence and build a domestic supply chain for a component heavily controlled by China.
Key facts
- Planned manufacturer
- Larsen & Toubro
- Incentive programme
- ₹7,280 crore ($764 million), according to the article
- Bids received
- 15
- China’s global output share
- About 90% of rare-earth magnet production
- Potential technology requirement
- L&T will need a technology partner with relevant expertise
- Applications
- Electric-vehicle motors, wind turbines, industrial robots and electronics
- Related L&T expansion
- The plan aligns with proposed investment in electric-vehicle motors
Sources
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