India has approved a $815 million (72.8 billion rupee) plan to expand domestic production of rare earth permanent magnets (REPMs), aiming to reduce reliance on imports, particularly from China, and strengthen supply chains for critical industries.
REPMs, made from alloys of rare earth elements, are essential in sectors such as electric vehicles, aerospace, and renewable energy. Currently, India meets most of its demand through imports, with government estimates suggesting domestic needs could double by 2030.
The newly approved scheme will offer sales-linked incentives and subsidies to establish a manufacturing capacity of approximately 6,000 metric tons per year. According to the government, the initiative will enhance self-reliance and position India as a key player in the global REPM market.
Industry groups have welcomed the move. Vikrampati Singhania, president of the Automotive Component Manufacturers Association of India (ACMA), said the plan would strengthen the automotive supply chain, encourage investment in advanced materials, and secure India’s role in global value chains for EVs and clean energy.
The initiative follows concerns over China’s rare earth export curbs earlier this year, which had raised alarms among Indian manufacturers. The government’s plan is seen as a strategic step to ensure long-term resilience in the country’s advanced mobility and clean energy sectors.
