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India Launches ₹7,280 Crore Push for Rare Earth Magnet Self-Reliance

India has announced a comprehensive push to establish self-reliance in Rare Earth Permanent Magnets (REPMs), crucial for advanced industries like electric vehicles and defence. The initiative combines a ₹7,280 crore manufacturing scheme with the creation of Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu as announced in the Union Budget 2026-27. This framework aims to develop an integrated domestic ecosystem from mining to manufacturing, leveraging India's substantial reserves of over 13 million tonnes of monazite. The move is critical as India currently imports 60-80% of its REPM needs from China, with demand expected to double by 2030.

Key Points: India's Rare Earth Magnet Scheme & Budget Corridors for Self-Reliance

  • ₹7,280 crore REPM manufacturing scheme
  • Dedicated Rare Earth Corridors in 4 states
  • Aims to cut 60-80% import dependence from China
  • Magnets vital for EVs, wind turbines, and defence
2 min read

India takes decisive steps toward self-reliance in critical materials

India launches a ₹7,280 crore REPM scheme and rare earth corridors in four states to cut import dependence and build a domestic magnet ecosystem.

"It is essential for India to expand domestic capability and invest in this sector to reduce import dependence and ensure long-term self-reliance - Official Statement"

New Delhi, Feb 3

With coordinated domestic and global initiatives, India is positioning itself as a reliable and competitive player in advanced materials value chains, taking decisive steps toward self-reliance in critical materials by establishing a domestic ecosystem for Rare Earth Permanent Magnets, an official statement said on Tuesday.

The Rs 7,280 crore REPM Manufacturing Scheme and the Union Budget 2026-27 announcement of Dedicated Rare Earth Corridors together create an integrated framework for mining, processing, research, and manufacturing, the statement said.

The Budget 2026-27 has announced the creation of Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to promote mining, processing, research, and manufacturing.

According to the statement, Rare Earth Permanent Magnets (REPMs) are among the strongest types of permanent magnets, known for their high magnetic strength and stability.

Their compact size and powerful performance make them indispensable for advanced engineering applications such as electric vehicle motors, wind turbine generators, consumer and industrial electronics, aerospace systems, defence equipment, and precision sensors.

The country possesses a substantial reserve of rare-earth minerals, providing a strong foundation for downstream industries like REPM manufacturing.

India holds 13.15 million tonnes of monazite, containing an estimated 7.23 million tonnes of rare-earth oxides (REO). These deposits occur across Odisha, Kerala, Andhra Pradesh, Tamil Nadu, West Bengal, Gujarat, Maharashtra, and Jharkhand, primarily in coastal beach sands, teri/red sands, and inland alluvium.

In Gujarat and Rajasthan, 1.29 million tonnes of in-situ REO resources have been identified in hard-rock areas. The Geological Survey of India (GSI) has further augmented reserves, identifying 482.6 million tonnes of rare-earth ore resources in 34 exploration projects.

However, although India has a strong rare-earth resource base, domestic production of permanent magnets is still at a developing stage, with imports mainly from China, meeting most of the demand (nearly 60-80 per cent by value and 85-90 per cent by quantity between 2022-25).

With the consumption of Rare Earth Permanent Magnets expected to double by 2030 due to rapid growth in electric mobility, renewable energy, electronics, and defence applications, it is essential for India to expand domestic capability and invest in this sector to reduce import dependence and ensure long-term self-reliance, said the statement.

- IANS

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Reader Comments

P
Priya S
Great initiative, but I hope the environmental impact of mining in these beautiful coastal and forest states is managed properly. We need green jobs, but not at the cost of our ecology. The corridors must have strict sustainability protocols.
R
Rohit P
Finally! Aatmanirbharta in action. 7,280 crore is a significant investment. This will create thousands of high-tech jobs in South India and Odisha. Hope the execution is as good as the plan. Jai Hind!
S
Sarah B
As someone working in the EV space, this is crucial news. The supply chain for permanent magnets is a bottleneck. If India can scale up quality production, it will be a game-changer for our domestic EV industry and attract global manufacturers.
V
Vikram M
The numbers are impressive – 13 million tonnes! But the article itself says we import 85-90% of our needs. The gap between resource and production is huge. The scheme must focus on technology transfer and building skilled manpower, not just corridors on paper.
K
Kavya N
Hope the benefits reach the local communities in these states, especially in places like Kerala and Tamil Nadu. It should lead to development of the region, not just extraction of resources. More IITs and research institutes should be involved.

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

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