SDG 9: Industry, Innovation, and Infrastructure | SDG 7: Affordable and Clean Energy | SDG 13: Climate Action
Ministry of Heavy Industries | Ministry of Mines | Department of Atomic Energy
The Government of India has approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)’ with a financial outlay of ₹7,280 crore. The scheme aims to establish 6,000 metric tonnes per annum (MTPA) of integrated manufacturing capacity, covering the entire value chain from rare-earth oxides to finished magnets.
Key structural elements of the scheme include:
Production Scale: Total capacity will be distributed among up to five beneficiaries through global competitive bidding, with each eligible for up to 1,200 MTPA.
Incentive Structure: Includes ₹6,450 crore for sales-linked incentives over five years and ₹750 crore as a capital subsidy for advanced manufacturing facilities.
Implementation Timeline: A seven-year window, featuring a two-year gestation period followed by five years of production-linked disbursement.
Strategic Autonomy: Currently, India depends on China for 84-90% of its permanent magnet imports; this scheme aims to reduce that reliance by leveraging India’s 7.23 million tonnes of rare-earth oxide resources.
What is a Rare Earth Permanent Magnet (REPM)? It is one of the strongest types of permanent magnets, characterized by exceptional magnetic strength and stability at very small sizes. REPMs are critical non-negotiable components for high-efficiency electric vehicle motors, wind turbine generators, aerospace guidance systems, and advanced defense technologies.
Policy Relevance
The REPM scheme is a cornerstone of India’s National Critical Minerals Mission (NCMM) and its broader strategy for Aatmanirbhar Bharat. By securing a domestic supply of high-performance magnets, India is insulating its renewable energy and defense sectors from global supply chain shocks while advancing its Net Zero 2070 commitments. Furthermore, recent amendments to the MMDR Act to allow private participation in mineral exploration ensure that the raw material feedstock (like monazite) is sustainably extracted to fuel this downstream manufacturing surge.
Relevant Question for Policy Stakeholders: How will the successful scaling of domestic REPM production impact the unit cost of locally manufactured electric vehicles and wind turbines by 2030?
Follow the full news here: Rare Earth Permanent Magnet Manufacturing Ecosystem