India notifies ₹7,280 crore NdFeB magnet scheme

The government has notified a ₹7,280 crore scheme to establish a domestic value chain for sintered rare earth permanent magnets (REPMs), covering conversion from rare earth oxides (REO) to sintered Neodymium‑Iron‑Boron (NdFeB) magnets.

The programme targets 6,000 MTPA of integrated manufacturing capacity to be allocated to five beneficiaries through a global RFP, with minimum allocations of 600 MTPA and maximums of 1,200 MTPA in 100 MTPA increments. Selected firms will receive sales‑linked incentives and capital subsidies to set up capacity. The three lowest bidders will also be assured a limited supply of NdPr oxide from IREL (India) Ltd.

The scheme runs seven years, including a two‑year gestation period for plant commissioning and five years of incentive disbursement; production that starts during gestation can extend the incentive window. Indigenous NdPr‑oxide‑based sintered NdFeB magnets will be eligible for the support measures.

India possesses substantial rare earth reserves and upstream oxide refining capability but lacks industrial‑scale midstream conversion to metals, alloys and finished magnets, leading to full imports of sintered NdFeB today. The new measures aim to secure supply chains for electric vehicles, renewable energy, aerospace, electronics and advanced manufacturing.