India has approved an $815.3 million plan to boost the production of rare earth magnets, aiming to reduce its dependence on imports, particularly from China. Rare earth permanent magnets (REPMs) are crucial components in various industries, including electric vehicles, aerospace, and renewable energy. The country currently relies heavily on imports to meet its demand, with the government estimating that its needs could double by 2030.
The approved scheme involves offering sales-linked incentives and subsidies to establish a manufacturing capacity of around 6,000 metric tons per year. This initiative aims to enhance India’s self-reliance and position it as a key player in the global REPM market. The government believes that securing the supply chain for domestic industries is essential, and this plan will help achieve that goal.
The production of REPMs is a critical aspect of India’s growing industries, including the automotive sector. Local industry groups, such as the Automotive Component Manufacturers Association of India (ACMA), have welcomed the move, stating that it will provide long-term resilience to the automotive supply chain. The investment in advanced materials will also give India a strong position in global value chains for electric vehicles and clean energy.
China’s export curbs on rare earth magnets earlier this year raised concerns among Indian firms, highlighting the need for a secure domestic supply chain. The approved plan is expected to encourage investments in advanced materials and reduce India’s dependence on imports. The government’s initiative is seen as a strategic move to address one of the critical gaps in the electric vehicle and advanced mobility ecosystem.
The plan’s implementation is expected to have a significant impact on India’s industries, particularly in the electric vehicle and renewable energy sectors. With the growing demand for REPMs, India’s efforts to boost domestic production are crucial for its economic growth and self-reliance. The government’s investment in the REPM industry is a step towards securing a stable supply chain and positioning India as a major player in the global market.