India's Bold Move: Boosting Rare Earth Magnet Production

India plans to boost domestic manufacturing of rare earth magnets, reducing reliance on imports from countries like China and Japan. A Rs 7,280 crore scheme was approved to promote production, aiming for export of surplus capacity in the future. The plan supports various sectors reliant on these crucial components.

In a strategic move, India is set to ramp up its domestic production of rare earth magnets, key components in sectors ranging from electronics to renewable energy. This initiative is expected to lessen the country's dependence on imports from nations like China and Japan, as confirmed by Union Minister Ashwini Vaishnaw.

Approved by the Union Cabinet, the ambitious Rs 7,280 crore 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' aims to foster local manufacturing capabilities. This financial package includes substantial sales-linked incentives and capital subsidies, encouraging the establishment of REPM facilities to meet and surpass India's annual demand.

Highlighting the nation's resource potential, Vaishnaw pointed out India's 6.9 million tonnes of rare earth reserves. With production set to begin within a few years, India also plans to export surplus capacity, signaling a significant shift in its approach to sourcing these crucial materials.

(With inputs from agencies.)