IREL has also approached Toyotsu Rare Earths India, a unit of Japanese trading house Toyota Tsusho, to seek help in reaching out to companies in Japan for processing of rare earth materials, the source said.
The source said IREL had an initial meeting with Toyotsu to explore whether it could engage Japanese magnet manufacturers, with one proposal involving the possibility of a Japanese company setting up a plant in India.
Toyota Tsusho and Toyotsu Rare Earths India did not immediately comment.
Japan’s Ministry of Economy, Trade and Industry, in charge of rare earths, did not immediately respond to a Reuters email seeking comment.
In June, Reuters reported that India asked IREL to suspend a 13-year-old rare earth export agreement with Japan to conserve domestic supplies.
IREL is prepared to supply rare earth element neodymium oxide to a technology partner, who would then produce the magnets and send them back to India, the source said.
The state miner currently has the capacity to produce 400 to 500 metric tons of neodymium annually, the source said, noting that output could increase depending on the terms of the collaboration.
IREL also plans to expand domestic rare earth mining and processing.
In India, rare earth mining is restricted to IREL, which supplies the Department of Atomic Energy with materials for nuclear power and defence-related applications.
The company is also exploring potential rare earth mining opportunities in Argentina, Australia, Malawi and Myanmar, the source said.
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