New Delhi: The Centre has approved a ₹7,280-crore scheme to start making Rare Earth Permanent Magnets (REPMs) in India—small but powerful magnets that run electric vehicles, wind turbines, electronics and defence equipment.
The idea is simple: stop depending so much on imports, mainly from China, and make these critical magnets at home.
Under the plan, India will create 6,000 tonnes per year of magnet-making capacity, covering the full process—from raw rare-earth material to finished magnets. Up to five companies will be selected through global bidding. Each can make up to 1,200 tonnes.
The government will support the project with:
₹6,450 crore as incentives linked to magnet sales over five years.₹750 crore as capital support to set up factories
A two-year window to build plants, followed by incentives for production
Why is this important?
Right now, India imports most of its permanent magnets—60–80% by value and nearly 90% by quantity, mostly from China. Demand is expected to double by 2030 due to the push for EVs, renewable energy and electronics. Without local production, India remains vulnerable to global supply shocks.
So what’s the problem?
India has plenty of rare-earth resources, but processing and magnet-making technology is complex, costly and tightly controlled globally.
Building factories is one thing; making world-class, affordable magnets at scale is another. Experts warn delays, technology gaps and environmental clearances could slow progress.
Good policy, hard execution
The scheme fits well with the National Critical Minerals Mission and recent mining law reforms. India is also tying up with mineral-rich countries to secure raw materials. But the real test will be execution on the ground—speed, technology partnerships, skilled workers and steady buyers.
This magnet scheme is a bold and necessary step towards self-reliance. If done right, it can boost clean energy, EVs and defence manufacturing. If delayed or poorly executed, it risks remaining a big announcement with limited impact.
