The Indian cabinet has approved a ₹7,280 crore plan to produce rare-earth permanent magnets in the country. These magnets are important for electric vehicles, wind turbines, electronics, and defence equipment. The move is part of India’s effort to reduce dependence on imports, especially from China.
The scheme will create factories that handle the entire production process, from turning rare-earth materials into metals, then into alloys, and finally into finished magnets. The government aims to set up plants that can produce a total of 6,000 metric tons per year.
This step is seen as critical because India currently imports most of its rare-earth magnets. With the demand expected to double by 2030 due to electric vehicles and renewable energy, producing them domestically will secure India’s supply and help the country become more self-reliant.
Most of the ₹7,280 crore, about ₹6,450 crore, will be given as incentives based on the sale of magnets made in India. Another ₹750 crore will go toward helping set up the manufacturing plants. The government will select up to five companies, both Indian and global, through a competitive process. Each company can produce up to 1,200 metric tons of magnets per year.
The plan will take seven years to complete: two years to set up the factories and five years for production under the incentive scheme.
Experts say this initiative could strengthen India’s technology and clean-energy industries, create jobs, and reduce reliance on imports. It is also expected to support the country’s environmental goals, including the aim to achieve net-zero emissions by 2070.
By producing these magnets at home, India will not only meet growing demand for electric vehicles and renewable energy but also boost its strategic and technological independence.
Also Read: India cuts Russian oil imports in December
