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India's Rs 7,280 Crore Push for Rare Earth Magnets Amid US Supply Chain Talks

Union Minister Ashwini Vaishnaw has arrived in Washington D.C. to participate in a Critical Minerals Ministerial Meeting, emphasizing secure supply chains for India's development goals. Concurrently, the Indian government has announced a major Rs 7,280 crore scheme to promote the domestic manufacturing of sintered Rare Earth Permanent Magnets. The initiative aims to establish 6,000 metric tonnes per annum of integrated manufacturing capacity, reducing import reliance and supporting energy transition objectives. India is also actively engaging in bilateral and multilateral partnerships to build resilient critical mineral supply chains.

Key Points: India's Critical Minerals Strategy & Rare Earth Magnet Scheme

  • Rs 7,280 crore scheme for rare earth magnets
  • Aims for 6,000 MTPA manufacturing capacity
  • Part of strategy to reduce import dependence
  • Supports India's Net Zero 2070 vision
  • Includes global partnerships for mineral security
2 min read

Ashwini Vaishnaw in US to participate in key ministerial meet on critical minerals

Minister Ashwini Vaishnaw in US for Critical Minerals Meeting as India launches a Rs 7,280 crore scheme to boost rare earth magnet manufacturing.

"Secure critical mineral supply chains are vital for our goal of Viksit Bharat. - Ashwini Vaishnaw"

New Delhi, Jan 11

Union Minister for Railways and Electronics and IT, Ashwini Vaishnaw, on Sunday arrived in the US to participate in the 'Critical Minerals Ministerial Meeting', scheduled to be held on Monday.

In a post on social media platform X, Vaishnaw said that "secure critical mineral supply chains are vital for our goal of Viksit Bharat."

"Arrived in Washington, D.C. Will participate in the Critical Minerals Ministerial Meeting tomorrow. Secure critical mineral supply chains are vital for our goal of Viksit Bharat," he posted.

The Indian government has recently announced a scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM), which aims to enhance India's participation in global advanced-materials value chains while reducing import dependence.

The scheme with a financial outlay of Rs 7,280 crore also aims to enable long-term industrial growth by establishing 6,000 metric tonnes per annum of integrated REPM manufacturing capacity covering the full chain from rare‑earth oxides to finished magnets, according to an official statement issued recently.

The scheme is designed to enhance competitiveness, attract technology‑driven investment and support long‑term scalability while contributing to energy‑transition goals and India's Net Zero 2070 vision, it added. By establishing domestic capability and strengthening downstream linkages, this Government's initiative will help generate employment, deepen industrial capacity and support the vision of Atmanirbhar Bharat.

The scheme will distribute a total of 6,000 MTPA of domestic manufacturing capacity across five beneficiaries through global competitive bidding, with each eligible for up to 1,200 MTPA.

It includes Rs 6,450 crore as sales‑linked incentives over five years and a Rs 750 crore capital subsidy, and will be implemented over seven years with a two‑year gestation period followed by five years of incentive disbursement, the government said.

The Ministry of Mines has entered into bilateral agreements with mineral-rich countries, including Australia, Argentina, Zambia, Peru, Zimbabwe and Mozambique.

India also participates in multilateral platforms such as the Minerals Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF) to build resilient critical minerals supply chains.

- IANS

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Reader Comments

P
Priya S
Good to see proactive diplomacy on minerals. We have the technical talent, but securing raw materials has always been a bottleneck. Partnerships with countries like Australia and Argentina are smart.
R
Rohit P
₹7,280 crore is a massive investment. Hope the implementation is transparent and the benefits actually reach the industries that need it, not just a few big players. The gestation period seems long though.
S
Sarah B
As someone working in the renewable sector, this is very welcome news. A stable domestic supply chain for REPMs will lower costs and boost our green manufacturing. The Net Zero 2070 vision needs such concrete plans.
V
Vikram M
While the intent is good, I hope we are also investing in recycling and urban mining of these critical minerals from old electronics. A truly secure supply chain needs a circular economy approach, not just new mining deals.
K
Karthik V
Excellent move! This is strategic thinking for the next 50 years. Critical minerals are the new oil. Being part of groups like the Minerals Security Partnership puts India at the high table. Jai Hind!

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