On Saturday, the Indian government shared its intention to initiate a scheme for boosting the production of sintered Rare Earth Permanent Magnets (REPM). This scheme by the Indian government mainly focuses on enhancing the country’s participation in the global advanced materials market while reducing its dependence on imports.
According to an official statement, the scheme will release a fund of INR 7,280 crore focused on fostering long-term industrial growth by establishing a comprehensive REPM manufacturing capacity of 6 thousand metric tonnes per year. The expected output is expected to cover the full chain, starting from rare earth oxides to finished magnets.
Outlining this scheme aimed towards attaining enhanced competitiveness, pool more technology-driven investments and supporting long-term growth while assuring positive contribution to energy-transition goals alongside India's Net Zero 2070 vision. By developing local capabilities and strengthening connections in the supply chain, the Indian government's effort is set to create jobs, boost industrial strength and further the Atmanirbhar Bharat mission.
Must read: Key industry individuals share their thoughts on the trending topics
The expected 6 thousand metric tonnes per year capacity, which is being deemed to be achieved via this scheme, will be divided across five beneficiaries, which will be rolled out via the global competitive bidding. Each of these five beneficiaries is eligible for nearly 12 hundred metric tonnes per annum.
In the coming five years, INR 6,450 crore will be sales-linked incentives alongside INR 750 crore, which will be given as the capital subsidy and shall be implemented over seven years in a two-year gestation period. followed by five years of incentive disbursement, as informed by the Indian government.
In addition to this, the Ministry of Mines has also come into a bilateral agreement with mineral-rich countries like Australia, Zambia, Zimbabwe, Argentina, Peru and Mozambique. The country has also been participating in multilateral platforms, which include the Minerals Security Partnership (MSP) and the Indo-Pacific Economic Framework (IPEF), which shall aid in building a resilient critical minerals supply chain.
Don’t miss out- Buyers are looking for your products on our B2B platform
As indicated by some of the official data, India, during 2022 to 2023 and 2024 to 2025, has sourced a major share of its permanent magnet imports from China, with the overall dependence ranged between 59.6 per cent and 81.3 per cent value-wise. Around 84.8 per cent and 90.4 per cent ranged in terms of quality-wise.
In sectors like electric vehicle motors, consumer and industrial electronics, precision sensors, wind turbine generators and aerospace and defence systems, REPMs are considered critical.
To know more about the global primary aluminium industry 2026 outlook, pre-book the report “Global Aluminium Industry Outlook 2026” at a special price.
_0_0.png)
Responses
