Cabinet approves ₹7,280 cr. scheme for rare earth magnets

27 NOVEMBER 2025

In yet another push to secure India’s supplies of rare earth magnets, the Union Cabinet approved a new “first-of-its-kind” ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’, with a financial outlay of ₹7,280 crore, to manufacture Rare Earth Permanent Magnets (REPM) in India.
“This first-of-its-kind initiative aims to establish 6,000 metric tonnes per annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market,” the government said in a release.
The plan is to allocate the total capacity of 6,000 MTPA to five beneficiaries through a global competitive bidding process with each beneficiary being allotted up to 1,200 MTPA.
REPMs are vital components that have applications in EVs, renewable energy, electronics, aerospace, and defence sectors.
According to the government, the scheme will support the creation of integrated REPM manufacturing facilities, involving the conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.
The total duration of the scheme is to be seven years from the date of award, including a 2-year gestation period for setting up an integrated REPM manufacturing facility, and 5 years for incentive disbursement on the sale of REPM.