India has approved a 72.8 billion rupees ($815.74 million) programme to expand domestic manufacturing of rare earth permanent magnets, as the country seeks to sharply reduce its reliance on imports for materials critical to industries including electric vehicles, aerospace, defence and renewable energy, the information minister said on Wednesday.
India’s demand for rare earth permanent magnets, among the strongest types of magnets used in industrial applications, is expected to double by 2030, according to the government. At present, most of that demand is met through imports. In the fiscal year ending March 2025, India imported 53,748 metric tons of rare earth magnets, official data showed.
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“Right now, all permanent magnets used in the country are imported from somewhere,” Information Minister Ashwini Vaishnaw told reporters after a cabinet meeting. “With the completion of this programme and the establishment of new plants, our import dependence will practically reduce to zero,” he said.
India’s heavy industries ministry said the programme will support the establishment of new manufacturing facilities with a combined annual capacity of 6,000 metric tons.
See also: India Plans Rare Earth Magnet Incentives to Curb China Dependency
The capacity will be distributed among five beneficiaries selected through a global competitive bidding process, with each company eligible for up to 1,200 metric tons per year. The move is intended to strengthen domestic supply chains as India accelerates its push into electric mobility, clean energy and high-technology manufacturing.
Source: Reuters