New Delhi
The Union Cabinet on Wednesday approved a major scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM) in India, with a total outlay of ₹7,280 crore. The initiative includes sales-linked incentives worth ₹6,450 crore over five years, aimed at encouraging local production and reducing dependence on imports.
The scheme will facilitate the establishment of integrated manufacturing facilities spanning the entire value chain—from converting rare earth oxides to metals, metals to alloys, and alloys to finished REPMs. It targets a total production capacity of 6,000 Metric Tons Per Annum (MTPA), with five units each capable of producing 1,200 MTPA. The seven-year program includes two years dedicated to setting up the manufacturing units.
India’s REPM consumption is expected to double by 2030, driven by demand from electric vehicles, defence systems, and renewable energy technologies. The scheme aims to create a strong domestic ecosystem for these critical components.
Currently, China dominates the global rare earth sector, controlling 60% of mining and nearly 90% of refining and processing. Recent export restrictions by China have highlighted the need for India to secure its supply chain for automotive and electronics industries, making this initiative strategically significant for the country’s industrial and technological growth.
