Rare Earth Permanent Magnet Manufacturing Scheme | 29 Dec 2025

India has approved a ₹7,280 crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) to build a 6,000 Metric Tonnes Per Annum(MTPA) integrated domestic REPM ecosystem covering the full value chain from rare-earth oxides to finished magnets.

Implementation: The scheme will be implemented over 7 years (2-year gestation + 5-year incentives), support up to five beneficiaries (1,200 MTPA each), and provide ₹6,450 crore sales-linked incentives and ₹750 crore capital subsidy.
Resource Availability: India currently depends heavily on imports, with China supplying 60–90% of permanent magnets (2022–25), while REPM demand is expected to double by 2030.
India has a strong resource base of 13.15 million tonnes of monazite containing 7.23 million tonnes of rare-earth oxides across multiple states.
About REPM: Rare Earth Permanent Magnets (REPMs) are high-strength permanent magnets made using rare-earth elements such as neodymium and samarium.
REPMs provide very high magnetic strength in compact size, making them essential for electric vehicle motors, wind turbines, electronics, aerospace and defence applications.
Other Supporting initiatives:

National Critical Minerals Mission (NCMM), 2025: Secures long-term supply of critical minerals by strengthening the entire value chain from exploration to recycling.
Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) – Amendment 2023: Enables private participation, auction of mineral concessions and new exploration licensing for critical minerals.
Global Mineral Security Initiatives: India strengthens overseas mineral access through Khanij Bidesh India Limited (KABIL) and participation in the Minerals Security Partnership (MSP), Indo-Pacific Economic Framework (IPEF) and Initiative on Critical and Emerging Technologies (iCET).