NewKerala.com

India Opens Global Bids for Rare Earth Magnet Plants to Cut China Reliance

The Ministry of Heavy Industries has invited global bids to establish integrated manufacturing facilities for sintered rare earth permanent magnets in India. The scheme offers significant financial incentives, including a capital subsidy and sales-linked incentives, to build a domestic capacity of 6,000 metric tonnes per annum. This initiative is crucial for sectors like electric vehicles, wind energy, and defence, aiming to reduce India's heavy import dependence, particularly on China. The bidding process is transparent and will be conducted online, with documents available until May 2026.

Key Points: India Invites Global Bids for Rare Earth Magnet Manufacturing

  • Global bids for 6,000 MTPA magnet capacity
  • Offers Rs 750 crore capital subsidy
  • Aims to cut import reliance, especially from China
  • Critical for EVs, defence, and wind energy
  • Bidding open until May 28, 2026
2 min read

India invites global bids for rare earth magnet manufacturing units

India invites global bids to set up rare earth magnet plants, offering subsidies to boost domestic production and reduce import dependence on China.

"With this bidding process, prospective applicants can submit their bids... and can be eligible for availing capital subsidy as well as sales-linked incentives - Ministry of Heavy Industries"

New Delhi, March 20

The Ministry of Heavy Industries has invited global bids for setting up integrated manufacturing facilities for sintered rare earth permanent magnets under a government scheme aimed at boosting domestic production.

According to an official statement, the Ministry has issued a Request for Proposal (RFP) to select beneficiaries for establishing NdFeB-based REPM manufacturing units with a total capacity of 6,000 metric tonnes per annum (MTPA).

"The release said, "With this bidding process, prospective applicants can submit their bids to establish integrated sintered NdFeB REPM manufacturing facilities in India and can be eligible for availing capital subsidy as well as sales-linked incentives under the Scheme."

The scheme provides financial incentives, including a capital subsidy of Rs 750 crore and sales-linked incentives worth Rs 6,450 crore. Each selected entity will be allocated production capacity ranging between 600 MTPA and 1,200 MTPA.

Rare earth permanent magnets are critical components used in sectors such as electric vehicles, wind energy, electronics, aerospace and defence. The initiative aims to establish a complete domestic value chain, from raw material (NdPr oxide) to finished magnets, thereby reducing India's dependence on imports.

It says, "The bidding will be conducted online through a transparent Least Cost System (LCS) comprising two-stages (Technical Bid and Financial Bid) through the Central Public Procurement (CPP) Portal."

Tender documents are available from March 20, 2026, with the bid submission deadline set for May 28, 2026. Technical bids will be opened on May 29, 2026.

The scheme also includes provisions for an assured supply of NdPr oxide through IREL (India) Ltd. for select bidders, ensuring raw material security for domestic manufacturers.

As per the data by the Ministry of Mines, India's rare earth market is heavily dependent on imports, with China being the dominant source. Due to recent Chinese export curbs, the Indian government has also launched the National Critical Mineral Mission to diversify sources.

As per a report by Crisil, in April 2025, China - the world's dominant exporter of rare earth magnets - imposed export restrictions on seven rare earth elements and finished magnets, mandating export licences.

"With the clearance process taking at least 45 days, this added scrutiny has significantly delayed approvals. And the growing backlog has further slowed clearances, tightening global supply chains," Crisil said.

India, which sourced over 80 per cent of its 540 tonne magnet imports from China last fiscal, felt the impact, Crisil asserted.

- ANI

Share this article:

Reader Comments

P
Priya S
Excellent move. The capital and sales-linked incentives are substantial and should attract serious players. My only concern is the timeline. The bid submission is over two months away. In a fast-moving global market, we need to move faster to capture the opportunity created by Chinese export curbs.
R
Rohit P
Finally! We import over 80% from China? That's a scary number for something used in defence and EVs. This initiative is long overdue. The assured supply of raw material through IREL is a smart clause. Let's build this industry properly and create lakhs of skilled jobs.
S
Sarah B
As someone working in the renewable energy sector, this is fantastic news. Wind turbines heavily rely on these magnets. A stable domestic supply will reduce costs and project delays in the long run. Hope the technical standards mandated are world-class to ensure we produce quality, not just quantity.
V
Vikram M
Good step, but the proof will be in the execution. We've seen schemes with big announcements before. The "transparent Least Cost System" sounds promising, but will it truly prevent cronyism? Also, what about the environmental impact of processing rare earths? That needs to be addressed clearly.
K
Kavya N
This is not just about business, it's about strategic autonomy. China's export restrictions were a wake-up call. Building this capacity will empower our EV and electronics manufacturing. Jai Hind! 🇮🇳

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50