Union coal and mines minister G Kishan Reddy said that India will begin production of rare earth permanent magnets this year, signalling a major step towards self-reliance in critical minerals. He made the announcement at a conference organised by industry and mines ministry officials under the Aatmanirbhar Bharat initiative. The move aims to reduce import dependence for components used in electric vehicles and renewable energy systems.

The government has prioritised supplies of neodymium, praseodymium and other rare earths and has taken steps including auctioning exploration blocks and approving recycling facilities to secure inputs. Officials acknowledged that processing capacity remains limited and identified processing as a key bottleneck for value addition. To address the shortfall, specific domestic infrastructure and policy support will be pursued. The policy will also promote domestic recycling capacity to recover critical elements and support circularity in the supply chain.

The mines ministry has identified four states for establishing critical mineral processing plant parks: Andhra Pradesh, Odisha, Maharashtra and Gujarat. Gujarat has already started preparatory work and Andhra Pradesh is ready to proceed while the minister plans meetings with the chief ministers of Odisha and Maharashtra to finalise arrangements. Policymakers emphasised that a complete value added chain is essential to avoid continued dependence on foreign processors.

The government intends to build a domestic ecosystem for high performance magnets that are essential for electric vehicles, wind turbines, electronics, aerospace and defence. In November 2025 the cabinet approved a Rs 72.8 billion (bn) scheme to develop 6,000 metric tonnes per annum (MTPA) of integrated manufacturing capacity covering the full value chain from rare earth oxides to finished magnets. Officials said the programme is designed to create integrated capacity and support recycling and downstream industries. Stakeholders will be engaged to build technical skills and align standards for environmentally responsible production and downstream integration.