Cabinet clears ₹7,280-crore scheme to build India’s first integrated rare earth permanent magnet manufacturing ecosystem
Under the scheme, India will establish 6,000 MTPA of integrated REPM manufacturing capacity—from converting rare earth oxides to metals, processing metals into alloys, and producing finished high-strength magnets used across advanced technologies.
New Delhi, November 27: The Union Cabinet has approved a ₹7,280-crore scheme to promote domestic manufacturing of sintered Rare Earth Permanent Magnets (REPM), marking India’s first dedicated initiative to build an end-to-end REPM ecosystem and reduce dependence on imports. The decision positions India to become a competitive global player in a sector critical to electric mobility, renewable energy, defence and aerospace.
Under the scheme, India will establish 6,000 MTPA of integrated REPM manufacturing capacity—from converting rare earth oxides to metals, processing metals into alloys, and producing finished high-strength magnets used across advanced technologies. REPMs are among the strongest known permanent magnets and are essential for electric vehicle motors, wind turbines, electronics, industrial automation systems and precision defence applications.
Driven by rapid expansion in EVs, renewables and consumer electronics, India’s REPM demand is expected to double between 2025 and 2030. The country currently depends heavily on imports to meet its requirements. The new scheme seeks to bridge this gap through indigenous capability creation, supporting the broader Atmanirbhar Bharat vision and India’s Net Zero 2070 commitment.
The financial outlay includes ₹6,450 crore in sales-linked incentives over five years and ₹750 crore in capital subsidy for setting up the 6,000-MTPA capacity. The government will select up to five beneficiaries through a global competitive bidding process, with each allotted up to 1,200 MTPA.
The scheme will run for seven years, including a two-year gestation period for establishing facilities and five years for incentive disbursement. Officials said the initiative will strengthen supply chains for automotive, aerospace, electronics and defence manufacturing while generating high-quality jobs and enabling India to compete in the global REPM market.
By fostering indigenous rare earth magnet production, the government aims to secure critical materials for emerging industries, enhance technological self-reliance, and build a sustainable manufacturing base aligned with the vision of Viksit Bharat @2047.
