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India Invests ₹7,280 Cr in Rare Earth Magnet Manufacturing
26 Nov, 2025
Summary
- Scheme aims to establish 6,000 MTPA rare earth permanent magnet capacity.
- Cabinet approved ₹7,280 crore manufacturing scheme for critical magnets.
- Magnets are vital for electric vehicles, aerospace, and defense sectors.
The Indian Cabinet has sanctioned a significant scheme to promote the domestic manufacturing of rare-earth permanent magnets, with an investment totaling ₹7,280 crore. This strategic move targets the establishment of a substantial production capacity, aiming to achieve 6,000 metric tonnes per annum. This development is set to bolster industries reliant on these critical components.
The approved "Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets" is designed to be implemented over seven years. This duration encompasses a two-year gestation period for setting up integrated manufacturing facilities, followed by five years for distributing incentives based on sales of the produced magnets.
Rare earth permanent magnets are indispensable for modern technology, finding essential applications in electric vehicles, advanced aerospace systems, sophisticated electronics, vital medical devices, and the defense sector, underscoring the importance of this manufacturing initiative.
