L&T to Bid for Domestic Rare-Earth Magnet Production
ECONOMY & POLICY

L&T to Bid for Domestic Rare-Earth Magnet Production

Larsen & Toubro Ltd (L&T) plans to manufacture rare-earth magnets in India and is preparing a bid for the government incentive policy valued at Rs 72.8 bn, according to people familiar with the matter. The sources said the deliberations remain private and that the company will need to secure a technology partner with expertise in high-precision engineering. The move marks a diversification for the conglomerate beyond construction, heavy engineering and industrial projects.

The programme has attracted 15 bids so far, including one from a consortium comprising Japan's Proterial Ltd and two Indian automakers, the sources said. L&T's entry would align with its intended investment in motors for electric vehicles, which rely on rare-earth permanent magnets. The component is critical for wind turbines, industrial robots and a wide range of electronics.

The government initiative follows export curbs by China, which controls 90 per cent of global output, and seeks to build a domestic supply chain. India approved a seven-year programme last year that includes Rs 64.5 bn in sales-linked incentives and Rs 7.5 bn in capital subsidies to boost magnet production. The plan aims to establish domestic capacity of 6,000 t annually and offers support to about five companies.

Authorities hope the incentives will encourage both domestic companies and overseas magnet makers to set up local production and reduce reliance on Chinese suppliers. The proposed magnet production would also support L&T's plan to build next-generation electric vehicle traction motors locally, for which the company has partnered with Israel-based EVR Motors. L&T's EPS Mobility unit has secured a maiden commercial order to supply 500,000 such motors to a two-wheeler manufacturer over three years. A company spokesperson did not immediately respond to a request for comment.

Larsen & Toubro Ltd (L&T) plans to manufacture rare-earth magnets in India and is preparing a bid for the government incentive policy valued at Rs 72.8 bn, according to people familiar with the matter. The sources said the deliberations remain private and that the company will need to secure a technology partner with expertise in high-precision engineering. The move marks a diversification for the conglomerate beyond construction, heavy engineering and industrial projects. The programme has attracted 15 bids so far, including one from a consortium comprising Japan's Proterial Ltd and two Indian automakers, the sources said. L&T's entry would align with its intended investment in motors for electric vehicles, which rely on rare-earth permanent magnets. The component is critical for wind turbines, industrial robots and a wide range of electronics. The government initiative follows export curbs by China, which controls 90 per cent of global output, and seeks to build a domestic supply chain. India approved a seven-year programme last year that includes Rs 64.5 bn in sales-linked incentives and Rs 7.5 bn in capital subsidies to boost magnet production. The plan aims to establish domestic capacity of 6,000 t annually and offers support to about five companies. Authorities hope the incentives will encourage both domestic companies and overseas magnet makers to set up local production and reduce reliance on Chinese suppliers. The proposed magnet production would also support L&T's plan to build next-generation electric vehicle traction motors locally, for which the company has partnered with Israel-based EVR Motors. L&T's EPS Mobility unit has secured a maiden commercial order to supply 500,000 such motors to a two-wheeler manufacturer over three years. A company spokesperson did not immediately respond to a request for comment.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code