The Indian government has given the green light to a ₹7,280 crore plan to manufacture rare-earth permanent magnets domestically. These magnets are essential for electric vehicles, wind turbines, consumer electronics, aerospace, and defence equipment. The move is part of India’s strategy to reduce reliance on imports, particularly from China.
The scheme will support setting up integrated manufacturing units that cover the full production process, from refining rare-earth materials into metals, making alloys, to producing finished magnets. The total planned production capacity is 6,000 metric tons per year.
Currently, India imports most of these magnets. With demand expected to rise sharply by 2030 due to electric mobility and renewable energy growth, domestic production will help secure supply and strengthen technological independence.
Under the plan, ₹6,450 crore will be provided as sales-linked incentives to companies over five years, while ₹750 crore will fund capital support to set up factories. Up to five companies, domestic or international, will be selected through a competitive process, with each allowed to produce up to 1,200 metric tons annually.
The project is expected to take seven years: two years for factory setup and five years for production under the incentive scheme.
Experts say the initiative will not only reduce imports but also create jobs, strengthen India’s clean-energy and tech sectors, and support the country’s long-term goal of reaching net-zero emissions by 2070. By building this domestic capacity, India aims to meet growing demand, boost self-reliance, and strengthen its position in critical high-tech industries.