India approves a $816 million programme to manufacture rare earth permanent magnets

The information minister announced on Wednesday that India had approved a manufacturing program for rare earth permanent magnets worth 72.8 billion rupees (815.74 million dollars) in order to reduce reliance on imported elements, which are critical to industries ranging from aerospace and electric vehicles to renewable energy and defence.

According to the Indian government, the country's demand for rare earth permanent magnetics - the strongest type of permanent magnet - will double by 2030. However, it currently imports most of its supply.

In the fiscal year that ended March 2025, South Asia imported 53 748 metric tonnes of rare earth magnets.

After a cabinet session, Information Minister Ashwini Vashnaw said to reporters: "At the moment, all permanent magnets in the country come from somewhere else... With the completion of this program and the establishment new plants, we will be able to reduce our dependence on imports almost to zero."

India's Ministry of Heavy Industries said that the new programme would increase self-reliance through support for manufacturing facilities with an annual capacity of up to 6,000 metric tonnes.

It added that the capacity would be allocated through a competitive global bidding process to five beneficiaries, who will each be given up to 1,200 tons of capacity per year.

(source: Reuters)