India Approves ₹7,000 Crore Scheme for Rare Earth Magnet Manufacturing

India has taken a major strategic step to secure its critical mineral supply chain by approving a ₹7,000 crore scheme to promote domestic manufacturing of sintered rare earth permanent magnets. The initiative aims to reduce import dependence, strengthen industrial self-reliance, and support high-growth sectors crucial to India’s long-term economic and strategic objectives.

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India Approves ₹7,000 Crore Scheme for Rare Earth Magnet Manufacturing

Rare Earth Resource Base in India

India possesses a substantial reserve of rare earth minerals distributed across coastal and inland regions. These minerals occur in:

• Beach sands
• Red sands
• Inland alluvium

Major states with deposits include Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra. This resource base provides the foundation for building an integrated domestic rare earth ecosystem.

Scheme for Sintered Rare Earth Permanent Magnets (REPM)

The government-approved Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) aims to establish India’s first end-to-end manufacturing ecosystem for high-value magnets.

Key Features of the Scheme:

• Target capacity: 6,000 metric tonnes per annum
• Covers the entire value chain
  • Rare earth oxides
  • Intermediate processing
  • Finished permanent magnets

Rare earth oxides serve as the core input for downstream industries, especially magnet manufacturing.

Strategic and Industrial Significance

Sintered rare earth permanent magnets are critical components in:

• Electric vehicles (EVs)
• Wind turbines
• Electronics and semiconductors
• Aerospace and defence platforms

Currently, India depends heavily on imports—especially from China—for these magnets. The scheme will:

• Enhance supply chain resilience
• Support the energy transition
• Strengthen domestic manufacturing
• Generate skilled employment

Exam-Oriented Key Facts

• Rare earth minerals are vital for clean energy and advanced technologies
• India has deposits in coastal sands and inland regions
• Sintered rare earth magnets are used in EVs, wind turbines and defence systems
• Reducing import dependence is a core objective of India’s mineral strategy

International Partnerships and National Vision

To complement domestic capacity, the Ministry of Mines has entered into bilateral agreements with mineral-rich countries such as Australia, Argentina and Zambia.

The initiative aligns with:

• Atmanirbhar Bharat
• Viksit Bharat 2047 roadmap

Rare earths are being positioned as a strategic pillar in India’s journey towards energy security, industrial growth and technological self-reliance.

Question & Answer

Q1. The ₹7,000 crore scheme approved by India focuses on manufacturing which product?
(a) Lithium-ion batteries
(b) Solar photovoltaic cells
(c) Sintered rare earth permanent magnets
(d) Semiconductor wafers
Answer: Sintered rare earth permanent magnets

Q2. What is the targeted annual production capacity under the REPM scheme?
(a) 2,000 metric tonnes
(b) 4,000 metric tonnes
(c) 6,000 metric tonnes
(d) 10,000 metric tonnes
Answer: 6,000 metric tonnes

Q3. Sintered rare earth permanent magnets are crucial for which sector?
(a) Textile manufacturing
(b) Electric vehicles and wind energy
(c) Food processing
(d) Fertiliser production
Answer: Electric vehicles and wind energy

Q4. Which ministry is leading India’s international partnerships on critical minerals?
(a) Ministry of Commerce
(b) Ministry of Power
(c) Ministry of Mines
(d) Ministry of Heavy Industries
Answer: Ministry of Mines

Q5. Reducing dependence on imports of rare earth magnets mainly aims to strengthen what?
(a) Tourism
(b) Supply chain resilience
(c) Agricultural productivity
(d) Urban housing
Answer: Supply chain resilience

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