India's Big Push for Magnets: A ₹5,000 Crore Plan for Self-Reliance

The government plans to significantly raise the budget for its rare earth magnet manufacturing scheme to over ₹5,000 crore, up from the earlier ₹1,350 crore, in a push to meet growing domestic demand and reduce reliance on imports.

Annual production targets will rise fourfold—from 1,500 metric tonnes to around 6,000 metric tonnes. Rare earth permanent magnets are critical for electric vehicles, wind turbines, electronics, and defence applications.

Following suggestions from the Prime Minister’s Office, the revised scheme will expand incentives from two to at least five manufacturers, each eligible for support on up to 1,200 MT annually. Companies involved in stakeholder discussions include JSW Group, Mahindra Group, Kalyani Group, Sona Comstar, Midwest Advanced Materials, Entellus, and Proterial.

Despite holding 6.9 million tonnes of rare earth reserves, India mined only 2,900 tonnes in 2024, while imports surged to 53,000 tonnes in FY25. IREL (India) Ltd remains the only PSU handling mining and refining.

Set to run for seven years, the scheme will be open to both public and private sector players capable of full-spectrum magnet production, with the goal of achieving self-reliance in this strategic sector.

News by Rahul Yelligetti.