SAMARIUM
AboutServices

samarium.dev
a software development company

India approves ₹7,280 crore rare-earth magnet push

11/26/2025, 8:01:09 PM | India

Automotive

Cabinet backs a ₹7,280-crore scheme to build 6,000 MTPA domestic rare-earth magnet capacity and reduce import reliance.

The Union Cabinet approved a ₹7,280-crore scheme to seed domestic production of sintered rare-earth permanent magnets (REPMs), aiming to establish 6,000 metric tonnes per annum of integrated capacity.

The programme combines ₹6,450 crore in sales-linked incentives over five years with ₹750 crore in capital subsidy to support facilities across the full value chain—from rare-earth oxides to metals, alloys and finished magnets. Total scheme duration is seven years, with a two-year gestation window followed by five years of incentive disbursement.

Capacity will be awarded to five beneficiaries via global competitive bidding, with each eligible for up to 1,200 MTPA. The move targets a fast-growing domestic market: India currently imports most REPMs and consumption is forecast to about double between 2025 and 2030 on rising EV, industrial and electronics demand.

Automotive and component associations welcomed the decision, saying it will reduce import dependence, strengthen supply chains for electric motors and high-efficiency systems, attract investment in advanced materials, and enhance competitiveness in EV and clean-energy manufacturing.

Related Articles

AI Unlocks Rare Earth-Free Magnets for EVs
2/20/2026

University of New Hampshire researchers harness AI to identify 25 new high-temperature magnetic materials, offering a path to eliminate rare earth dependency in electric vehicle motors and boost automotive sustainability.

European Automakers Race for Australian Rare Earths
2/13/2026

Amid China's tightening export controls on rare earth elements, major European car companies are negotiating directly with Australian miner Arafura Resources to secure vital supplies for electric vehicle motors and batteries.

China's Rare Earth Curbs Disrupt Global Auto Production
2/10/2026

China's tightened export controls on rare earth elements in late 2025 and early 2026 have halted production at major automakers like Honda and Toyota, exposing vulnerabilities in EV and hybrid motor supply chains while spurring recycling and rare-earth-free innovations.

Cyclic Materials Secures $75M to Revolutionize Rare Earth Recycling for EVs
2/6/2026

Canadian firm Cyclic Materials raises $75 million to expand rare earth magnet recycling from EV motors and e-waste, tackling China's supply dominance and bolstering automotive electrification amid ongoing shortages.

India Launches Rare Earth Corridors to Secure EV Magnet Supply
2/1/2026

India's Union Budget 2026 introduces dedicated Rare Earth Corridors and bolsters magnet manufacturing to counter supply disruptions, aiming to fortify the automotive sector's access to critical materials for electric vehicles.