The Indian government has approved a ₹7,280 crore scheme to develop domestic Rare Earth Permanent Magnet (REPM) manufacturing capacity. The initiative aims to make India self-reliant in REPM, reduce import dependence, and position the country as a major global player in EVs, electronics, defense, and renewable energy sectors.
Under the leadership of Prime Minister Narendra Modi, the Indian Cabinet has approved a historic ₹7,280 crore mega plan to develop domestic Rare Earth Permanent Magnet (REPM) manufacturing. With this scheme, India will join the ranks of the world’s leading REPM producers.
The plan targets the creation of an integrated REPM production capacity of 6,000 metric tons annually. Currently, most of India’s REPM demand is met through imports. Once implemented, India will become self-reliant and a significant player in the global supply chain.
The scheme aims to meet India’s domestic REPM requirements and enable future exports. Key objectives include:
Establish 6,000 MT annual production capacity
Reduce import dependence
Support EVs, electronics, and defense sectors
Increase India’s share in the global technology supply chain
Rare Earth Permanent Magnets (REPMs) are considered some of the strongest magnets in the world. Made from elements like neodymium and samarium, they are widely used in:
Electric vehicles (EV motors)
Wind turbines
Aerospace applications
Defense systems
Mobile phones, laptops, and consumer electronics
Robotics and medical machinery
With India’s EV sector growing rapidly, demand for REPMs is expected to double over the next five years.
The production of sintered REPM involves several high-precision steps:
Rare Earth Oxides are converted into metal.
Metals are alloyed.
The alloy is powdered and heat-compressed.
A solid magnet is produced.
This high-tech and precision-driven process is performed by very few countries worldwide.
Between 2025 and 2030, India’s REPM consumption is projected to double due to:
The EV boom
Expansion of renewable energy projects
Rising electronics demand
Increased investment in defense and aerospace
Currently, a large portion of India’s REPM requirements is imported from China and other countries.
The government will select 5 companies through a global competitive bidding process.
Each selected company will receive:
1,200 MT annual production capacity
Incentives for 5 years
Capex support
Collaboration in technology and R&D
The scheme prioritizes companies that can advance India’s micro-mobility and high-end manufacturing sectors.
The overall duration of the scheme is 7 years:
2 years for setting up units
5 years for production-based incentives
This will elevate India’s REPM production to a new level.
Electric Vehicles (EV sector)
Renewable Energy (Wind & Solar tech)
Defense technology
Aerospace
Consumer electronics
Medical devices
High-power motors and robotics
The scheme will help create a robust domestic value chain across these sectors.
India becomes a net producer of REPMs
Ability to supply global companies
Reduced dependence on China
Establish India as a major production hub in Asia
Strengthen strategic sectors and self-reliance
Generation of thousands of new jobs
Strengthened MSME supply chains
Boost to high-tech manufacturing
Potential for large exports
Attraction of foreign investment
Conclusion
The Cabinet’s approval of the ₹7,280 crore REPM manufacturing scheme is a game-changer for India. It positions the country as a global player in Rare Earth Magnet production, supports high-tech industries like EVs, defense, electronics, and renewable energy, and sets the stage for India to achieve self-reliance and global market leadership in strategic manufacturing sectors.