India Approves $816 Million Rare Earth Permanent Magnets Manufacturing Programme

Wedoany.com Report-Nov. 27, India's cabinet approved a 72.8 billion rupee ($815.74 million) programme on Wednesday to establish domestic production of rare earth permanent magnets. The initiative aims to strengthen local supply for these materials, which are essential components in electric vehicles, renewable energy equipment, aerospace applications, and defence systems.

India's Minister for Information Technology Ashwini Vaishnaw addresses the audience during the 'SemiconIndia 2023', India’s annual semiconductor conference, in Gandhinagar, India, July 28, 2023.

Demand for rare earth permanent magnets in India is projected to double by 2030. At present, the country relies almost entirely on imports to meet its requirements. In the fiscal year that ended March 2025, India imported 53,748 metric tons of these magnets.

"Right now, all permanent magnets used in the country are imported from somewhere ... with the completion of this programme and the establishment of new plants, our import dependence will practically reduce to zero," Information Minister Ashwini Vaishnaw told reporters following the cabinet meeting.

The programme will support the creation of manufacturing capacity totaling 6,000 metric tons per year, according to a statement from the Ministry of Heavy Industries. Production will be distributed among five selected companies through an open global bidding process, with each recipient receiving capacity of up to 1,200 metric tons annually.

The new facilities are expected to begin operations in the coming years, gradually replacing imported supplies and enhancing India's manufacturing base for high-performance magnets used in advanced technologies. The initiative reflects ongoing efforts to build a more complete domestic value chain for critical materials required by fast-growing sectors such as clean energy and electric mobility.