India unveils $800 million push for rare earth magnet production


India’s first integrated magnet manufacturing push

The federal Cabinet has cleared a Rs72.8 billion scheme aimed at creating India’s first fully integrated REPM manufacturing ecosystem. The initiative is designed to establish 6,000 metric tonnes per year (MTPA) of magnet-making capacity — a scale never attempted in the country.

What are rare earth magnets?

  • Rare Earth Permanent Magnets (REPMs)

  • Made from alloys of rare earth elements such as neodymium, praseodymium and samarium

  • Among the strongest magnets in the world

  • Enable compact, high-efficiency motors

  • Essential for EVs, wind turbines, aerospace, defence tech, drones and electronics

  • Global supply dominated by China

  • Considered strategically sensitive due to widespread high-tech applications

According to the government, the plan will:

Industry welcomes the push

Why rare earth magnets matter more than ever

Officials expect the initiative to:

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