India approves 72.8 billion rupees rare earth permanent magnets manufacturing programme

[NEW DELHI] India has approved a 72.8 billion rupees (S$1.1 billion) rare earth permanent magnets manufacturing programme, the information minister said on Wednesday (Nov 26).

This is to cut reliance on imports of elements critical to sectors ranging from electric vehicles and aerospace to defence and renewable energy.

India’s consumption of rare earth permanent magnets – one of the strongest types of permanent magnets – is expected to double by 2030, but it currently meets its demand primarily through imports, said the government.

The South Asian nation imported 53,748 tonnes of rare earth magnets in the fiscal year ending March 2025.

“Right now, all permanent magnets used in the country are imported from somewhere ... with the completion of this programme and the establishment of new plants, our import dependence will practically reduce to zero,” information minister Ashwini Vaishnaw told reporters after a Cabinet meeting.

The new programme will increase self-reliance by supporting the establishment of manufacturing facilities with a total capacity of 6,000 tonnes a year, India’s heavy industries ministry said.

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The capacity will be allocated to five beneficiaries through a competitive global bidding process. REUTERS