India launches $800M rare earth magnet push
11/27/2025, 8:04:07 PM | China | India
India approved a Rs72.8 billion plan to build 6,000 MTPA of rare earth magnet capacity, reducing import reliance and boosting EV, wind, and defence supply chains.
New Delhi — The federal government has approved a Rs72.8 billion (about $800 million) programme to build India’s first integrated rare earth permanent magnet (REPM) manufacturing ecosystem.
The scheme targets 6,000 metric tonnes per year (MTPA) of magnet-making capacity and includes Rs6,450 crore in sales-linked incentives over five years, Rs750 crore in capital subsidies, R&D support and policy measures to attract domestic and international investment.
REPMs—alloys containing elements such as neodymium, praseodymium and samarium—deliver very high magnetic flux and power density, enabling compact, efficient motors and generators. They are critical for electric vehicle drivetrains, wind-turbine generators, missiles, drones, satellites, MRI machines and advanced industrial automation.
India currently imports most high-grade magnets, with global processing and production concentrated in China. Officials say the new capacity will cut import dependence, plug gaps in processing and metallurgy, and strengthen strategic supply chains exposed by recent export curbs.
The initiative is intended to support EV and renewable deployment, bolster defence and aerospace supply chains, create skilled jobs, and help meet India’s Net Zero 2070 goals by enabling wider electrification and wind power deployment.
Authorities expect the programme to position India as a competitive REPM supplier while accelerating domestic technology and manufacturing capabilities.