In a major step towards strengthening India’s technological self-reliance, the Government has approved a ₹7,280 crore scheme to establish a domestic, integrated Rare Earth Permanent Magnet (REPM) manufacturing ecosystem. The initiative aims to build 6,000 metric tonnes per annum (MTPA) of end-to-end manufacturing capacity—from rare-earth oxides to finished magnets—positioning India as a key player in global advanced-materials value chains while reducing import dependence in strategic sectors.
Key Highlights of the REPM Manufacturing Scheme
The approved scheme lays the foundation for a robust and future-ready REPM ecosystem with the following core features:
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Creation of 6,000 MTPA domestic REPM capacity covering the full value chain
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Financial outlay of ₹7,280 crore, including ₹6,450 crore in sales-linked incentives over five years
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₹750 crore capital subsidy to support advanced manufacturing facilities
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Capacity allocation to up to five beneficiaries, with a cap of 1,200 MTPA per entity through global competitive bidding
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Seven-year implementation period, comprising two years of gestation and five years of incentive-linked production
This structure ensures scale, diversification, and long-term commercial viability.
Why Rare Earth Permanent Magnets Matter
Rare Earth Permanent Magnets are among the strongest and most efficient permanent magnets, making them indispensable for high-performance and compact engineering applications. REPMs are critical inputs for:
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Electric vehicle motors
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Wind turbine generators
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Consumer and industrial electronics
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Aerospace and defence systems
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Precision sensors and actuators
As India accelerates growth in electric mobility, renewable energy, electronics manufacturing, and defence indigenisation, a secure domestic supply of REPMs becomes vital for competitiveness and strategic autonomy.
India’s Resource Base and the Need for Domestic Manufacturing
India possesses a strong rare-earth mineral base, particularly monazite deposits spread across coastal and inland regions. The country holds:
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13.15 million tonnes of monazite, containing about 7.23 million tonnes of rare-earth oxides (REO)
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Additional 1.29 million tonnes of in-situ REO resources in Gujarat and Rajasthan
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482.6 million tonnes of rare-earth ore resources identified by the Geological Survey of India
Despite this resource advantage, domestic REPM manufacturing remains limited, leading to high import dependence—primarily from China. Between 2022–23 and 2024–25, imports accounted for 59.6%–81.3% by value and 84.8%–90.4% by quantity. With REPM demand projected to double by 2030, the scheme addresses a critical gap in India’s industrial ecosystem.
Strategic Alignment with National Priorities
The REPM manufacturing initiative aligns closely with India’s broader development and sustainability goals:
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Atmanirbhar Bharat: Strengthening domestic manufacturing and reducing strategic import dependence
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Net Zero 2070: Supporting clean-energy technologies such as EVs and wind power
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National Security: Ensuring secure access to critical components for defence and aerospace
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Advanced Manufacturing: Enabling high-value, technology-intensive industrial growth
The scheme also complements the National Critical Minerals Mission (NCMM), which focuses on securing and strengthening critical mineral value chains across exploration, mining, processing, and recycling.
Policy Reforms Enabling the Ecosystem
Recent reforms under the Mines and Minerals (Development and Regulation) Amendment Act, 2023 have created an enabling environment by:
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Introducing a dedicated list of critical and strategic minerals
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Allowing private-sector participation across exploration and mining
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Empowering the Government to auction mineral concessions
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Establishing a new exploration licence regime for deep-seated and critical minerals
These reforms, combined with the REPM scheme, provide a strong regulatory and policy backbone for long-term industrial investment.
Global Context and India’s Emerging Opportunity
Global rare-earth supply chains have faced repeated disruptions, highlighting the importance of diversified and resilient sourcing. India has proactively responded through:
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Bilateral mineral partnerships with countries such as Australia, Argentina, Zambia, Mozambique, and others
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Participation in multilateral platforms including the Minerals Security Partnership (MSP), IPEF, and iCET
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Overseas mineral acquisition efforts led by Khanij Bidesh India Limited (KABIL), a joint venture under the Ministry of Mines
These initiatives, together with domestic capacity creation, strengthen India’s position in global advanced-materials supply chains.
Conclusion
The Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets marks a decisive step in India’s journey towards technological self-reliance and industrial transformation. By building integrated domestic capacity, attracting advanced manufacturing investment, and aligning with clean-energy and strategic priorities, the initiative will generate employment, deepen industrial capabilities, and support the vision of Atmanirbhar Bharat and Viksit Bharat @2047. The REPM ecosystem is poised to power India’s next leap in advanced manufacturing and global competitiveness.
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Source: PIB
