+
India Plans Rs 13.5 Billion Scheme for Rare Earth Magnets
POWER & RENEWABLE ENERGY

India Plans Rs 13.5 Billion Scheme for Rare Earth Magnets

The Indian government is preparing to launch a Rs 13.5 billion incentive scheme to promote the domestic production of rare earth magnets, in a move aimed at reducing the country’s reliance on Chinese imports, according to official sources.

The proposed scheme, expected to run for seven years, will support the creation of a local supply chain for rare earth magnets—critical components used in electric vehicles, electronics, and defence equipment. Subsidy levels are still being finalised, with industry proposals ranging from 30 to 50 per cent support. The final subsidy structure will influence the scheme’s total fiscal impact.

A concept note for the initiative has been circulated by the Ministry of Heavy Industries to key departments including the Ministry of Mines, Ministry of Finance, Department of Atomic Energy, and NITI Aayog. The plan gains urgency following China’s recent export restrictions on rare earths, which raised global supply chain concerns.

Officials believe the Rs 13.5 billion allocation will be adequate to establish processing and manufacturing capacity, with industry feedback indicating that it will take two years to set up processing plants, and Indian-made magnets could be available within three years.

Despite possessing 6.9 million metric tonnes of rare earth reserves, India mined only 2,900 tonnes in 2024, while imports reached 53,000 metric tonnes in FY25. State-run IREL remains the sole entity currently engaged in mining and refining rare earths in India.

At least five to six companies have expressed interest in magnet manufacturing, including major importer Sona Comstar and Midwest Advanced Materials, which has committed to producing 500 tonnes by end-2025 and scaling up to 5,000 tonnes in 2026.

The scheme is part of India’s broader effort to develop strategic mineral capacity, enhance self-reliance, and diversify critical supply chains in high-tech sectors.


The Indian government is preparing to launch a Rs 13.5 billion incentive scheme to promote the domestic production of rare earth magnets, in a move aimed at reducing the country’s reliance on Chinese imports, according to official sources.The proposed scheme, expected to run for seven years, will support the creation of a local supply chain for rare earth magnets—critical components used in electric vehicles, electronics, and defence equipment. Subsidy levels are still being finalised, with industry proposals ranging from 30 to 50 per cent support. The final subsidy structure will influence the scheme’s total fiscal impact.A concept note for the initiative has been circulated by the Ministry of Heavy Industries to key departments including the Ministry of Mines, Ministry of Finance, Department of Atomic Energy, and NITI Aayog. The plan gains urgency following China’s recent export restrictions on rare earths, which raised global supply chain concerns.Officials believe the Rs 13.5 billion allocation will be adequate to establish processing and manufacturing capacity, with industry feedback indicating that it will take two years to set up processing plants, and Indian-made magnets could be available within three years.Despite possessing 6.9 million metric tonnes of rare earth reserves, India mined only 2,900 tonnes in 2024, while imports reached 53,000 metric tonnes in FY25. State-run IREL remains the sole entity currently engaged in mining and refining rare earths in India.At least five to six companies have expressed interest in magnet manufacturing, including major importer Sona Comstar and Midwest Advanced Materials, which has committed to producing 500 tonnes by end-2025 and scaling up to 5,000 tonnes in 2026.The scheme is part of India’s broader effort to develop strategic mineral capacity, enhance self-reliance, and diversify critical supply chains in high-tech sectors.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code