India Approves ₹7,280 Crore Push for Rare Earth Magnet Manufacturing

India has launched a ₹7,280 crore initiative to develop its first integrated manufacturing ecosystem for Rare Earth Permanent Magnets (REPM), aiming to reduce import dependence and boost domestic production in strategic sectors like electric mobility, renewable energy, and defense

This move is a strategic effort to compete in a market dominated by China, which currently controls over 90% of the world's rare earth magnet supply, as India's demand for these magnets is expected to double by 2030

The scheme includes sales-linked incentives and capital subsidies, aiming to establish a 6,000 MTPA manufacturing base over a seven-year period, with up to five manufacturers selected through global bidding to benefit from the initiative

The development of a domestic REPM industry is crucial for India's electric vehicle sector, renewable energy projects, and defense systems, as these magnets are essential components in motors, turbines, and control systems

By building this ecosystem, India aims to reduce vulnerability to global supply chain disruptions, diversify supply chains, and encourage innovation in clean-tech materials

The initiative aligns with India's broader national missions, such as the Net Zero 2070 commitment and the Viksit Bharat @2047 vision, supporting the country's goals for climate action and technological advancement

The scheme is expected to attract global investments and position India as a potential manufacturing hub for rare earth magnets, offering an alternative to existing supply chains

This strategic milestone not only strengthens India's industrial backbone and defense capabilities but also enhances its global manufacturing relevance and technology independence