The subcontinent aims to build a domestic magnet industry amid its reliance on imports.
India’s cabinet has approved a $815 million, seven-year program to build large-scale domestic production of rare earth permanent magnets, a critical component for electric vehicles, wind turbines, electronics, and defense applications. The plan nearly triples the subsidy volume originally proposed earlier this year.
According to Bloomberg, the scheme aims to build up a 6,000 tons per year of magnet output across five manufacturing units, combining production-linked incentives with capital subsidies and funding for research into rare earth-free motor technologies. The first two years will focus on plant construction, followed by five years of incentive payouts.
The initiative comes as China tightened export rules on rare earth materials in April, highlighting India’s vulnerability to supply disruptions. While firms such as Vedanta and JSW Group have expressed initial interest in the plan, according to Bloomberg, experts warn that access to necessary technology and long development lead times remain key hurdles.
Photo: iStock/Derek Brumby