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India's Rare Earth Revolution: Rs 7,280 Crore Push for Magnet Self-Reliance

The Union Cabinet has approved a massive Rs 7,280 crore scheme to boost rare earth permanent magnet manufacturing in India. This initiative will establish 6,000 metric tons per year of integrated REPM production capacity. The scheme includes sales-linked incentives and capital subsidies to attract global manufacturers. This move aims to reduce India's dependence on Chinese imports while supporting electric vehicles and renewable energy sectors.

Key Points: Cabinet Approves Rs 7280 Crore Rare Earth Magnets Manufacturing Scheme

  • Scheme aims to create 6,000 MTPA integrated REPM manufacturing capacity in India
  • Will support electric vehicles, renewable energy, and defense sectors through sales-linked incentives
  • Five beneficiaries to be selected via global competitive bidding process
  • Helps reduce India's heavy dependence on REPM imports from China
2 min read

Cabinet approves Rs 7280 crore Rare Earth Permanent Magnets scheme to enhance self-reliance, promote REPM ecosystem

India launches Rs 7,280 crore scheme to establish 6,000 MTPA rare earth permanent magnet capacity, reducing import dependence and boosting electric vehicle and defense sectors.

"very important, strategic decision - Ashwini Vaishnaw"

New Delhi, November 26

In a significant initiative aimed at enhancing self-reliance and positioning India as a key player in the global REPM market, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of Rs 7, 280 crore.

This first-of-its-kind initiative aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.

Briefing reporters on the decisions of the Union Cabinet, Information and Broadcasting Minister Ashwini Vaishnaw said it is "very important, strategic decision".

The total financial outlay of the scheme is Rs 7280 crore, comprising sales-linked incentives of Rs 6450 crore on REPM sales for five years and capital subsidy of Rs.750 crore for setting up an aggregate of 6,000 MTPA of REPM manufacturing facilities.

The total duration of the scheme will be seven years from the date of award, including a two-year gestation period for setting up an integrated REPM manufacturing facility, and five years for incentive disbursement on the sale of REPM, an official release said.

The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. Each beneficiary will be allotted up to 1,200 MTPA of capacity.

REPMs are one of the strongest types of permanent magnets and are vital for electric vehicles, renewable energy, electronics, aerospace, and defence applications.

The Scheme will support the creation of integrated REPM manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.

"The initiative by the Government of India is a landmark step towards strengthening the domestic REPM manufacturing ecosystem and enhancing competitiveness in the global markets. By fostering indigenous capabilities in REPM production, the scheme will not only secure the REPM supply chain for domestic industries but also support the nation's Net Zero 2070 commitment," the release said.

"It embodies the governments unwavering commitment to build a technologically self-reliant, globally competitive, and sustainable industrial base, in line with the vision of Viksit Bharat @2047," it added.

India currently relies heavily on imports of rare-earth permanent magnets, primarily from China. The proposed incentive mechanism is expected to support investment in processing, refining, and magnet-making capabilities, which remain underdeveloped in the country.

- ANI

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Reader Comments

R
Rohit P
Finally some concrete action on rare earth minerals! We've been talking about this for years. The 6000 MTPA capacity will be a game-changer for our EV and renewable energy sectors. Well done!
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Arjun K
While I appreciate the initiative, I hope the implementation is transparent and the benefits actually reach domestic manufacturers. We've seen schemes fail due to bureaucratic hurdles. Proper monitoring is essential.
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Sarah B
As someone working in the renewable energy sector, this is very encouraging. REPMs are critical for wind turbines and EVs. Domestic production will reduce costs and supply chain risks. Great move for green energy transition! 🌱
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Vikram M
₹7280 crore is a substantial investment. Hope the global bidding process ensures we get the best technology partners. This could position India as a major player in the global supply chain for critical minerals.
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Michael C
The strategic importance of this cannot be overstated. With defense applications mentioned, this reduces our vulnerability in critical sectors. Smart move for national security alongside economic benefits.
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Ananya R
This aligns perfectly with our Net Zero 2070 commitment! Domestic REPM production will boost our EV manufacturing and help reduce carbon emissions. A win-win for economy and environment! ✨

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