India clears Rs 7,280 crore REPM manufacturing push

The Union Cabinet approved a Rs 7,280 crore programme to build domestic capacity for sintered Rare Earth Permanent Magnets (REPM), a critical input for EVs, renewable energy, electronics, medical devices, aerospace and defence.

The scheme targets a cumulative manufacturing capacity of 6,000 metric tonnes per annum (MTPA), to be allocated to five beneficiaries selected through global competitive bidding, with up to 1,200 MTPA per bidder. The design aims to attract global and domestic firms, stimulate competition and create an integrated production base.

Financial support includes Rs 6,450 crore in sales-linked incentives over five years and a Rs 750 crore capital subsidy. The programme spans seven years from award: a two-year gestation window for facility commissioning followed by five years of incentive-linked production, encouraging private investment, technology acquisition and R&D in advanced magnet production.

India presently meets most REPM demand through imports, even as domestic needs-driven by EVs and renewables-are projected to roughly double by 2030 versus 2025. By covering the full value chain from rare earth oxides to finished magnets, the initiative seeks to reduce import dependence, strengthen supply-chain resilience and enhance strategic industrial capabilities.