India expects to begin producing rare-earth permanent magnets at home before the end of 2026, announced Union Minister G. Kishan Reddy, adding the initiative is intended to expand domestic manufacturing and reduce dependence on foreign suppliers.

The decision follows Cabinet clearance last November for a dedicated scheme to support local production. The programme sets a target of 6,000 tonnes per year and carries funding of INR 72,800 million (USD 800.8 million). Such magnets are essential components in electric vehicles, consumer electronics, renewable energy equipment, aerospace systems and defence applications.

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India currently has only modest capacity in this segment. Raw materials are mined locally but shipped abroad for processing, which limits domestic value addition. The new initiative is designed to reverse that pattern.

Addressing a gathering organised by the Federation of Indian Chambers of Commerce and Industry, Reddy said talks are underway to develop processing parks in Odisha, Andhra Pradesh, Maharashtra and Gujarat. Preparatory work has started in Gujarat, while Andhra Pradesh has expressed support for the proposal.

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He also pointed to the scope for recovering critical minerals from domestic waste streams. Scrapped electronic items, including old mobile phones, could provide an additional source of valuable materials.

Proposed processing hubs, greater emphasis on recycling with better production plans are aimed at strengthening India’s position in the supply chain for critical minerals.