India is set to triple incentives for rare-earth magnet manufacturing to nearly ₹7,000 crore ($788 million), aiming to reduce reliance on China and secure critical material supply for electric vehicles, wind energy, and defence.
The expanded PLI scheme, awaiting Cabinet approval, will support around five manufacturers through investment and production incentives. Rare-earth magnets, vital for EV motors and renewable technologies, are currently dominated by China, which controls about 90% of global refining.
To ensure a steady input supply, foreign miners such as Lynas Rare Earths (Australia), Rainbow Rare Earths (UK), and Iluka Resources have assured the government of rare-earth oxide availability under the plan.
This initiative aligns with India’s broader strategy to build supply-chain resilience and boost domestic capacity in clean-tech manufacturing.
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