Cabinet Approves ₹7,280 Crore Scheme for Rare Earth Magnet Manufacturing
The Union Cabinet has approved a new scheme worth ₹7,280 crore to promote the manufacturing of sintered rare earth permanent magnets in India. This is the country’s first initiative aimed at establishing an annual production capacity of 6,000 metric tonnes of integrated permanent magnets.
Union Minister Ashwini Vaishnaw stated that rare earth permanent magnets are among the strongest available and are essential for technologies such as electric vehicles, renewable energy equipment, electronics, aerospace, and defence systems. The scheme will support complete domestic production — from processing rare earth oxides into metals, converting metals into alloys, and finally manufacturing finished magnets.
Demand for these magnets in India is rising rapidly and is expected to double by 2030, largely due to growth in EVs, renewable energy, and electronics. Currently, India depends mainly on imports for its requirements.
This initiative will enable India to set up its first integrated rare earth magnet manufacturing ecosystem, strengthening self-reliance, boosting skilled employment, and supporting the national goal of achieving Net Zero emissions by 2070.
The scheme will run for seven years, including a two-year setup period, and production capacity will be allocated to five selected beneficiaries through a global competitive process.
