The government announced a scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM) with the aim of increasing India’s involvement in global advanced-materials value chains and reducing import reliance. This initiative, backed by a Rs 7,280 crore budget, seeks to establish 6,000 metric tonnes per annum of integrated REPM manufacturing capacity, covering the entire production process from rare-earth oxides to finished magnets.
The scheme is strategically crafted to enhance competitiveness, attract technology-driven investments, and ensure long-term scalability while aligning with energy-transition objectives and India’s Net Zero 2070 vision. By fostering domestic capabilities and reinforcing downstream connections, the scheme is expected to create job opportunities, strengthen industrial capacity, and support the Atmanirbhar Bharat vision.
Under this scheme, a total of 6,000 MTPA of domestic manufacturing capacity will be allocated among five beneficiaries through global competitive bidding, with each eligible for up to 1,200 MTPA. The incentives include Rs 6,450 crore as sales-linked incentives over five years and a Rs 750 crore capital subsidy. The implementation timeline spans seven years, including a two-year gestation period followed by five years of incentive disbursement.
The Ministry of Mines has also inked bilateral agreements with mineral-rich nations like Australia, Argentina, Zambia, Peru, Zimbabwe, and Mozambique. Additionally, India is actively engaged in multilateral initiatives such as the Minerals Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF) to fortify resilient critical minerals supply chains.
India’s reliance on China for permanent magnet imports has been significant, with import dependence ranging from 59.6% to 81.3% value-wise and 84.8% to 90.4% quantity-wise between 2022-23 and 2024-25. Rare Earth Permanent Magnets (REPMs) play a crucial role in various sectors including electric vehicle motors, wind turbine generators, consumer electronics, aerospace, defense systems, and precision sensors.
