India's Push for Self-Reliance: New Scheme to Boost Domestic REPM Manufacturing

The Indian government has launched a Rs 7,280 crore scheme to boost domestic manufacturing of sintered Rare Earth Permanent Magnets (REPM), reducing reliance on China. By developing a complete value chain, the initiative aims to enhance strategic industrial advancements in EVs, aerospace, and green energy sectors.

India is stepping up its efforts in the strategic manufacturing sector with an ambitious Rs 7,280 crore scheme to produce sintered Rare Earth Permanent Magnets (REPM) domestically. By reducing dependency on China, this initiative seeks to secure vital supply chains for electronic vehicles, aerospace, and green energy industries.

Approved by the Union Cabinet, the scheme aims to establish a comprehensive domestic manufacturing chain converting rare earth oxide into sintered NdFeB. Indigenously produced magnets will benefit from sales-linked incentives and capital subsidy, encouraging the setup of 6,000 MTPA REO to sintered NdFeB REPM manufacturing facilities nationwide.

Involving a transparent bidding process, the initiative will allocate manufacturing capacities to selected applicants. Notably, IREL (India) Ltd will supply material to three beneficiaries offering the lowest bids. The scheme spans seven years, addressing India's current import-heavy REPM landscape and fostering indigenous capability.

(With inputs from agencies.)