India Launches ₹72.8 Billion Push to Manufacture Rare Earth Permanent Magnets Domestically

India has approved a ₹72.8 billion (about $816 million) programme to develop large-scale manufacturing of rare earth permanent magnets, aiming to sharply reduce its reliance on imports for these strategically important materials. Permanent magnets—used extensively in electric vehicles, wind turbines, aerospace systems, defence equipment and advanced electronics—are currently sourced entirely from abroad, making India vulnerable to supply chain disruptions and price fluctuations. The government highlighted that India's consumption of rare earth permanent magnets is projected to double by 2030. Despite this rising demand, the country imported 53,748 metric tons of these magnets in FY25. Information Minister Ashwini Vaishnaw said the new initiative would significantly strengthen domestic capabilities, eventually bringing import dependence “practically to zero” once the planned plants are operational. Under the programme, the Ministry of Heavy Industries will support the creation of manufacturing facilities with a combined annual capacity of 6,000 metric tons. This capacity will be distributed among five selected players through a global competitive bidding process, with each beneficiary eligible for allocations of up to 1,200 metric tons per year. The move is expected to enhance India’s industrial resilience, promote self-reliance in critical technologies, and support the country’s clean energy and electric mobility transition.