India Launches Strategic Initiative to Manufacture Rare Earth Magnets

The Indian government has approved a Rs 7,280 crore scheme to boost the domestic manufacturing of rare earth permanent magnets (REPMs), reducing reliance on imports from China. The scheme aims to develop a capacity of 6,000 MTPA by creating integrated manufacturing facilities and promoting self-reliance.

The government on Wednesday approved a Rs 7,280 crore scheme aimed at boosting the manufacturing of rare earth permanent magnets in India. This strategic move seeks to reduce India's heavy reliance on Chinese imports in sectors essential to the economy, such as electric vehicles, renewable energy, and aerospace.

Prime Minister Narendra Modi chaired the Cabinet meeting that greenlit the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets.' The program is designed to establish an annual manufacturing capacity of 6,000 metric tonnes through a global competitive bidding process, which will distribute the capacity amongst five selected beneficiaries, each potentially handling up to 1,200 tonnes.

The scheme includes a generous financial outlay, offering sales-linked incentives worth Rs 6,450 crore and a capital subsidy of Rs 750 crore. With a seven-year timeline, the initiative also aims to bolster employment and enhance the self-reliance of India's emerging REPM manufacturing ecosystem.

(With inputs from agencies.)