Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets

On 26th November 2025, the Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets.

The scheme aims to build domestic capacity for integrated production of rare earth permanent magnets, from oxides to finished magnets, and reduce import dependence in strategic sectors.

Aspect	Details
Scheme Aim	The scheme aims to establish 6,000 MTPA of integrated production capacity, covering the full chain from rare earth oxides to finished magnets.
Implementation Model	Implementation will be distributed among five beneficiaries selected through global competitive bidding.
Scheme Period	The scheme will be implemented over a 7-year period.
Rising Demand	India’s requirement for Rare Earth Permanent Magnets (REPMs) is expected to double by 2030.
Import Dependence	India imported over 53,000 metric tonnes of rare earth permanent magnets in 2024-25.
Supply Security	The scheme seeks to reduce vulnerability to China’s supply chain dominance and export restrictions in the rare earth magnet sector.
Industrial Importance	Domestic REPM production is crucial for electric vehicles, renewable energy, electronics and defence manufacturing.

PT Facts

REPM: Rare Earth Permanent Magnets are essential for EV motors and wind turbines.
Electronics Use: REPMs are also used in electronics and defence systems.
Sintering: Powdered material is compacted and heated to form a solid structure.
Critical Minerals: Rare earths are part of the strategic critical minerals ecosystem.
Import Dependence: Reducing imported magnet dependence is vital for EV manufacturing.
Renewable Energy: Domestic magnets support wind energy and clean-tech supply chains.

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