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India's Rare Earth Magnet Plan: Deadline Extended
15 May
Summary
- India extends bid deadline for rare earth magnet plants to June 29.
- Scheme aims to reduce dependence on China for critical magnets.
- Five factories with 6,000 tonnes/annum capacity are planned.
The Union heavy industries ministry has extended the bid submission deadline for its ₹7,280 crore incentive scheme to establish five rare earth magnet manufacturing plants in India. Bids can now be submitted until 29 June 2026, with technical bids opening on 30 June 2026. This extension aims to encourage wider participation in the program.
The scheme, approved in November 2025, is designed to counter supply shortages caused by China's export halts. It aims to support five factories with a total production capacity of 6,000 tonnes per annum, offering capital and sales-linked incentives over seven years.
India, despite possessing significant rare earth reserves, remains heavily dependent on China for processing and magnet manufacturing. Approximately 20 companies participated in earlier consultations, raising concerns about raw material availability. India Rare Earth Ltd (IREL) will supply raw materials to selected bidders.
The government assures companies that raw material supply will not be a constraint, with IREL committing to provide 500 tonnes of rare earth oxides to selected firms, enough to produce an estimated 1,500 tonnes of magnets.
