India launches Rs 7,280-crore rare-earth magnet scheme

New Delhi - The Union Cabinet approved a Rs 7,280-crore scheme to build a domestic rare earth permanent magnet (REPM) ecosystem, aiming to cut heavy import dependence on China.

The plan will fund integrated facilities that convert Nd–Pr oxide into high-performance sintered NdFeB magnets used in electric vehicles, wind turbines, defence systems, consumer electronics and medical devices. The government has set a 6,000 MTPA REPM capacity target and expects rollout over seven to ten years using capital subsidies, viability gap funding and production-linked incentives.

Beijing currently dominates refined magnet production; the new programme seeks to reduce that strategic vulnerability as demand rises with India’s push for 30% EV penetration by 2030 and expanded renewable capacity. For scale, a mid-size EV uses about 1–2 kg of NdFeB while a 3 MW offshore turbine can require roughly 600 kg.

India holds roughly 6.9 million tonnes of rare-earth-oxide-equivalent reserves concentrated in Kerala’s monazite belts and coastal deposits in Odisha, Andhra Pradesh and Tamil Nadu, yet contributes minimally to global production.

Processing remains complex and hazardous: monazite contains thorium and uranium, separation needs multi-stage solvent extraction, large acid inputs and generates substantial tailings (around 70–100 tonnes per tonne of oxide). The programme will be overseen by the Department of Atomic Energy, Ministry of Mines and NITI Aayog.