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.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?