New Scheme for Manufacturing of Rare Earth Permanent Magnets
- 27 Nov 2025
On 26th November 2025, the Union Cabinet approved a ₹7,280-crore “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM),” marking India’s first major initiative to build an integrated REPM ecosystem and reduce import dependence.
Key Points
- About the Scheme: The initiative aims to develop 6,000 MTPA domestic capacity for sintered Rare Earth Permanent Magnets, essential components in EVs, renewable energy, aerospace, defence and electronics.
- Strategic Importance: REPMs are among the world’s strongest permanent magnets, and India currently relies heavily on imports to meet its demand.
- Scheme Outlay:
- Total Financial Outlay: ₹7,280 crore
- Sales-linked Incentives: ₹6,450 crore for five years
- Capital Subsidy: ₹750 crore for setting up 6,000 MTPA capacity
- Beneficiaries & Allocation: Five companies will be selected through global competitive bidding, with capacity allotment of up to 1,200 MTPA each.
- Duration: The scheme will run for seven years—two years for setting up facilities and five years for incentive disbursement.
- Integrated Manufacturing Focus: The initiative supports end-to-end REPM production, including conversion of rare earth oxides to metals, metals to alloys, and alloys to finished magnets.
- Rising REPM Demand: Consumption in India is expected to double by 2030, driven by rapid growth in electric mobility, renewable energy, industrial machinery and consumer electronics.
- Economic & Strategic Impact: The scheme will reduce import dependence, strengthen critical supply chains, generate employment, and position India as a competitive global magnet manufacturer.
