India approves ₹7,280 crore rare-earth magnet push

The Union Cabinet approved a ₹7,280-crore scheme to seed domestic production of sintered rare-earth permanent magnets (REPMs), aiming to establish 6,000 metric tonnes per annum of integrated capacity.

The programme combines ₹6,450 crore in sales-linked incentives over five years with ₹750 crore in capital subsidy to support facilities across the full value chain-from rare-earth oxides to metals, alloys and finished magnets. Total scheme duration is seven years, with a two-year gestation window followed by five years of incentive disbursement.

Capacity will be awarded to five beneficiaries via global competitive bidding, with each eligible for up to 1,200 MTPA. The move targets a fast-growing domestic market: India currently imports most REPMs and consumption is forecast to about double between 2025 and 2030 on rising EV, industrial and electronics demand.

Automotive and component associations welcomed the decision, saying it will reduce import dependence, strengthen supply chains for electric motors and high-efficiency systems, attract investment in advanced materials, and enhance competitiveness in EV and clean-energy manufacturing.