India approved a 72.8 billion rupee plan to build 6,000 MTPA rare-earth magnet capacity, reducing import dependence and strengthening supply chains.
New Delhi approved a 72.8 billion rupee ($815.3 million) scheme to expand production of rare earth permanent magnets (REPMs), aiming to reduce import dependence and secure domestic supply chains. REPMs are high-strength magnets made from rare-earth element alloys and are essential for electric vehicles, aerospace components and renewable energy technologies. The cabinet-backed plan combines sales-linked incentives and subsidies to help establish roughly 6,000 metric tons per annum of integrated REPM manufacturing capacity. Officials say the initiative will boost self-reliance, attract investment in advanced materials and strengthen India’s role in global value chains for EVs and clean energy. The government framed the program as a strategic move to build upstream and downstream capabilities needed as national demand may double by 2030. Industry groups welcomed the policy. Vikrampati Singhania, president of the Automotive Component Manufacturers Association of India, said it will provide long-term resilience to the automotive supply chain and encourage technology adoption. The decision follows export curbs from major suppliers this year that exposed vulnerabilities, prompting policymakers to prioritize local production of critical magnet materials.