The Union Cabinet has approved a landmark US$ 815 million (Rs. 7,280 crore) scheme to promote the domestic manufacturing of Sintered Rare Earth Permanent Magnets (REPM). These magnets are essential components in electric vehicles, renewable energy equipment, electronics, aerospace systems, and strategic defence technologies.
With global demand for REPMs expected to double by 2030, India’s initiative aims to reduce heavy import dependence, strengthen supply-chain security, and position the country as a competitive global manufacturer.
Building a 6,000 MTPA Integrated REPM Ecosystem
The scheme targets the creation of 6,000 Metric Tonnes Per Annum (MTPA) of REPM manufacturing capacity. It supports the full value chain, covering:
- Conversion of rare earth oxides into metals
- Processing metals into magnet alloys
- Manufacturing alloys into high-strength permanent magnets
This integrated structure ensures technological self-reliance across all stages.
Incentives and Subsidies to Drive Global-Scale Production
The scheme includes:
- Rs. 6,450 crore (US$ 722 million) in sales-linked incentives over five years
- Rs. 750 crore (US$ 84 million) capital subsidy for facility creation
Capacity will be allocated to five beneficiaries via a global competitive bidding process, with each eligible for up to 1,200 MTPA.
The total execution period spans seven years, including a two-year project setup phase followed by five years of incentives.
Strengthening India’s Industrial Future
By developing a robust domestic REPM ecosystem, India aims to boost employment, support its Net Zero commitments, and enhance strategic manufacturing capabilities in mobility, energy, and defence.
This move significantly advances India’s ambition to become a global hub for advanced materials and high-performance magnet technologies.
