NEW DELHI: The government on Wednesday has approved a Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with a total financial outlay of Rs 7,280 crore. This includes sales-linked incentives worth Rs 6,450 crore on REPM sales for a period of five years.
According to the government, the scheme will support the creation of integrated manufacturing facilities covering the entire value chain—from the conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs. The initiative will create a manufacturing capacity of 6,000 Metric Tons Per Annum (MTPA), including five units with capacities of 1,200 MTPA each. The scheme will run for seven years, including two years for setting up manufacturing units.
India’s consumption of REPMs is projected to double by 2030 compared to 2025 levels.
The initiative seeks to develop a robust domestic ecosystem for REPMs—critical components used in electric vehicles, defence systems, and renewable energy technologies.
Currently, China controls about 60 percent of global rare earth mining and nearly 90 percent of refining and processing capacity. In April, it imposed restrictions on REPM exports, tightening supply to India’s automobile and electronics sectors.