India approves $815 million scheme to produce 6,000 tons of rare earth magnets annually, reducing import dependence for EVs and clean energy sectors
MUMBAI: India has approved a more than $800 million plan to boost production of rare earth magnets to secure supplies and reduce import dependence.
The cabinet approved a 72.8 billion rupee (RM3.8 billion) scheme to promote rare earth permanent magnet manufacturing.
This initiative aims to establish 6,000 metric tons per year of integrated manufacturing capacity in India.
Rare earth permanent magnets are among the strongest permanent magnets made from rare earth element alloys.
They are critical components in electric vehicles, aerospace, and renewable energy sectors.
New Delhi currently meets its demand primarily through imports, with needs expected to double by 2030.
The government said the plan will help secure the “supply chain for domestic industries”.
The scheme involves offering sales-linked incentives and subsidies to manufacturers.
“This first-of-its-kind initiative aims to establish 6,000 MTPA of integrated REPM manufacturing in India,” the government stated.
It will enhance self-reliance and position India as a key player in the global REPM market.
Local industry groups welcomed the move as providing long-term resilience to automotive supply chains.
Automotive Component Manufacturers Association of India president Vikrampati Singhania called it a strategic intervention.
“This addresses one of the most critical gaps in the EV and advanced mobility ecosystem,” he said.
The initiative will encourage investments in advanced materials and strengthen India’s global value chain position.
While India sources magnets from multiple countries, China’s recent export curbs raised alarm among Indian firms. – AFP
