India Ignites Rs 7,350 Crore Revolution to Dominate Rare Earth Magnet Production

Image Source: NDTV Profit

India is launching a Rs 7,350-crore, seven-year scheme to build a full domestic production ecosystem for rare earth permanent magnets. This initiative aims to slash import dependence, support critical sectors like EVs and defense, and establish five integrated manufacturing units producing up to 6,000 tonnes annually by 2030.

In a strategic move to secure its supply chain and reduce reliance on imports, India is set to unveil a Rs 7,350 crore plan fostering domestic manufacturing of sintered rare earth permanent magnets (REPMs). These magnets, essential for electric vehicles, electronics, renewable energy, and defense industries, have been heavily imported, mainly from China, which recently imposed export restrictions affecting Indian industries.

The ambitious initiative—likely named the Scheme to Promote Sintered Rare Earth Permanent Magnet Manufacturing in India—targets establishing a fully indigenous manufacturing value chain. Its focus lies on converting rare earth elements specifically neodymium-praseodymium oxide (NdPr), into neodymium-iron-boron (NdFeB) magnets via advanced sintering technology

that compresses powdered materials into solid magnets.

Key highlights of the scheme include:

A seven-year duration with a total investment of Rs 7,350 crore.
Creation of five integrated manufacturing units across India, each with an annual production capacity of up to 1,200 tonnes.
A combined targeted production capacity of around 6,000 tonnes per year by 2030.
Financial incentives comprising capital subsidies and sales-based rewards to encourage companies to participate in the critical last three stages of magnet production: oxide-to-metal conversion, metal-to-alloy transformation, and alloy-to-magnet manufacturing.
Bid capacities for units range between 600 to 1,200 tonnes annually, in increments of 100 tonnes.
Oversight and beneficiary selection managed through a transparent two-stage tender process conducted by the Ministry of Heavy Industries.

Currently, India’s annual demand for rare earth permanent magnets is estimated at 4,010 tonnes, with expectations to rise sharply to 8,220 tonnes by 2030 as sectors like electric vehicles and wind energy grow rapidly. Establishing domestic production capabilities will not only help meet this surging demand but also shield India from global geopolitical risks and supply disruptions, notably due to China’s export controls.

The government’s push reflects a broader national strategy towards technological self-reliance, clean energy adoption, and enhancing global value chain participation. With this scheme, India aims to become a significant player in the rare earth magnet market, vital for powering tomorrow’s technologies.

Sources: Business Standard, NDTV Profit, Moneycontrol, Times of India, Economic Times

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