India has approved a 72.8 billion rupees ($815.74 million) programme to manufacture rare earth permanent magnets. The initiative aims to reduce the country’s dependence on imports for materials vital to electric vehicles, aerospace, defence, and renewable energy.
According to government officials, India consumes large quantities of rare earth permanent magnets, which are among the strongest types of magnets. Demand is expected to double by 2030, but the country currently relies heavily on imports to meet its requirements.
In the fiscal year ending March 2025, India imported 53,748 metric tons of rare earth magnets. Information Minister Ashwini Vaishnaw said the new programme will significantly reduce this reliance. “With the completion of this programme and the establishment of new plants, our import dependence will practically reduce to zero,” he stated.
The programme will establish manufacturing facilities with a combined annual capacity of 6,000 metric tons. Capacity will be divided among five beneficiaries through a global competitive bidding process, with each company allotted up to 1,200 metric tons per year.
Officials said the initiative will boost domestic production, enhance self-reliance, and support India’s strategic industries. The project also aims to encourage innovation in magnet technology and advanced manufacturing.
By producing rare earth permanent magnets locally, India plans to strengthen its industrial base and reduce vulnerability to global supply chain disruptions. Government sources noted that the programme will also create jobs and contribute to long-term economic growth.
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The first manufacturing plants are expected to begin operations in the coming years. Experts said this programme positions India as a key player in the global rare earth market, enhancing both technological capabilities and economic independence.
