Room air conditioners (RACs) and laundry washing machines (LWMs) are crucial green energy products linked with economic growth in India, since both have a much lower level of market (and household) penetration than refrigerators. The key issues often overlooked while creating the aspiration-driven, larger picture are the availability of resources and indigenous industrial capability. The aspiration for the large-scale green transition needs to be revisited periodically to realign the priorities and chart out the most viable trajectory for the transition to a cleaner future. Energy-efficient RACs and LWMs necessitate using Rare Earth (RE) permanent magnets in their motor architecture because of their superior performance compared to their ferrite counterparts. All the motors and magnets used in the air conditioners, washing machines, and EVs are currently imported. More than 80% of the usage of rare earths in value terms is in RE permanent magnets. The industrial capabilities to manufacture RE permanent magnets and customized motors for the ecosystem would require appropriate incentives, uninterrupted availability of the critical RE materials used in the magnets, and demand for indigenous products.
