India's Magnet Manufacturing Revolution: New Scheme to Boost Rare Earth Magnet Production

India has launched a scheme to establish facilities for producing 6,000 MTPA of rare earth magnets. It offers subsidies and incentives to boost domestic manufacturing in sectors like EVs and defense, reducing reliance on imports. The bidding process will prioritize technical and financial proposals using the Central Public Procurement Portal.

The Indian government has unveiled a new initiative aimed at boosting the domestic production of rare earth magnets, essential components in key industries such as electric vehicles and defense. The scheme, with a budget of Rs 7,280 crore, seeks to construct facilities producing 6,000 metric tonnes annually.

The Ministry of Heavy Industries has invited proposals to select beneficiaries aiming to establish integrated manufacturing units. The bidding process will be entirely online, utilizing Central Public Procurement Portal in a two-stage system focusing on technical and financial aspects.

The scheme offers capital subsidies and sales-linked incentives to encourage industry engagement. This initiative is part of India's strategy to decrease its reliance on Chinese imports and strengthen its position in the global market for rare earth permanent magnets.

(With inputs from agencies.)