New Delhi, Sept. 15 -- As demand for electric vehicles and renewable energy surges for green transition, rare earth elements (REEs) have become indispensable even as they are scarce. A recent McKinsey report warned that global supply of REE magnets, vital for e-motors and wind turbines, could fall 30 percent short of demand by 2035.

Circular solutions such as recycling and recovery of scrap rare earth materials can be scaled up to ramp up the availability of such inputs for the industry, the McKinsey report suggested.

"Demand for rare earth elements needed for magnets will likely surge over the next ten years. Postconsumer scrap could unlock additional supply, although recovery remains a challenge," the McKinsey report read.

Rare earth...