India Approves $815 Million Plan to Boost Rare-Earth Magnet Production and Reduce Imports
The post India Approves $815 Million Plan to Boost Rare-Earth Magnet Production and Reduce Imports appeared com. India has approved a $815 million investment to enhance domestic production of rare-earth permanent magnets, aiming to reduce reliance on imports amid global supply chain disruptions. This initiative targets 6, 000 metric tonnes per annum capacity through five manufacturing units, supporting EVs and renewable energy sectors. India’s $815 million program supports integrated manufacturing of rare-earth magnets to achieve self-reliance. The plan includes five units, each producing up to 1, 200 tonnes annually, with operations starting in 2-3 years. In 2024-25, India imported 53, 748 metric tonnes of these magnets, highlighting the need for local production to cut dependence on China. India approves $815 million for rare-earth magnets production to boost self-reliance in EVs and clean energy. Discover how this impacts global supply chains and reduces import risks. Read more now. What is India’s rare-earth permanent magnets production program? India’s rare-earth permanent magnets production program is a government-backed initiative worth ₹7, 280 crore ($815-816 million) designed to establish a complete domestic supply chain for these critical components. It focuses on converting rare-earth oxides into metals, alloys, and finished magnets, with the goal of reaching 6, 000 metric tonnes per annum across five integrated units. This effort aligns with the Atmanirbhar Bharat policy to foster self-reliance in high-tech industries. How will export restrictions influence India’s rare-earth magnets strategy? Export restrictions from China have disrupted global rare-earth supply chains, prompting India to accelerate local manufacturing to secure supplies for electric vehicles, wind turbines, and electronics. According to government data, these magnets are essential for sectors like aerospace and defense, where reliability is paramount. The program, announced by Information and Broadcasting Minister Ashwini Vaishnaw, includes a two-year setup phase followed by five years of incentives, enabling firms to scale production efficiently. Experts note that while domestic rare-earth oxide supplies like neodymium-praseodymium are limited, international sourcing and mining expansions will.