The government of India has approved a Rs72.8bn ($815mn) scheme to promote the manufacturing of sintered rare earth permanent magnets (REPMs) to increase self reliance in advanced magnet technology, it announced on 26 November.
The initiative aims to establish 6,000 t/yr of integrated REPM manufacturing capacity through five companies selected by competitive bidding. The scheme includes Rs64.5bn in sales-linked incentives over five years and a Rs7.5bn capital subsidy for establishing facilities. Each company will be allotted up to 1,200 t/yr of production capacity, and the scheme will run for seven years, including a two-year setup period.
The scheme focuses on building capability in advanced production stages currently lacking in India, including converting rare earth oxide to metal, metal to alloy, and alloy to finished magnets. This initiative aims to strengthen supply chains, create jobs, support industrial growth, and contribute to India's goal to achieve net zero by 2070.
REPMs are essential for electric vehicles, renewable energy, electronics, aerospace, and defence. India's REPMs consumption is expected to double by 2030 from 2025 levels, but the country currently relies heavily on imports despite having rare earth reserves.
