India approves $816M rare earth magnets manufacturing program

India has approved a 72.8 billion rupees ($815.74 million) rare earth permanent magnets manufacturing program, the information minister said on Wednesday, in an effort to cut reliance on imports for the elements critical to sectors ranging from electric vehicles and aerospace to defence and renewable energy.

India’s consumption of rare earth permanent magnets – one of the strongest types of permanent magnets – is expected to double by 2030, but it currently meets its demand primarily through imports, according to the government.

The South Asian nation imported 53,748 metric tons of rare earth magnets in the fiscal year ending March 2025.

“Right now, all permanent magnets used in the country are imported from somewhere … with the completion of this program and the establishment of new plants, our import dependence will practically reduce to zero,” Information Minister Ashwini Vaishnaw told reporters after a cabinet meeting.

The new program will increase self-reliance by supporting the establishment of manufacturing facilities with a total capacity of 6,000 metric tons per annum, India’s heavy industries ministry said in a statement.

The capacity will be allocated to five beneficiaries through a global competitive bidding process, each of whom will be allotted up to 1,200 metric tons per annum, it added.

($1 = 89.2440 Indian rupees)

(By Sakshi Dayal; Editing by YP Rajesh)