India, Dec. 27 -- The Government of India has issued a release:
Key Takeaways
India's End-to-End Value Chain Strategy
Mining Reforms for Critical Minerals
Khanij Bidesh India Limited (KABIL) is a joint venture of National Aluminium Company Ltd. (NALCO), Hindustan Copper Limited (HCL) and Mineral Exploration & Consultancy Limited (MECL) under the Ministry of Mines, established to secure India's supply of critical and strategic minerals by identifying, exploring, acquiring and developing mineral assets overseas. Its mandate is to strengthen the domestic value chain for emerging technologies and clean-energy industries, giving a strong push to the Make in India initiative.
Critical minerals are a set of naturally occurring elements and compounds that have diverse irreplaceable industrial applications.
Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) was enacted for regulation of mines and development of minerals. It has been reformed under the Mines and Minerals (Development and Regulation) Amendment Act, 2023 to strengthen India's critical minerals ecosystem (for critical and deep-seated minerals) by opening private participation in all spheres of mineral exploration, empowering the Government to auction mineral concessions, and introducing a new exploration license regime.
Given their central role in contemporary industrial economies, enabling technological advancements and boosting economies, access to critical minerals has become a strategic priority for India.
Approved in January 2025, the NCMM aims to secure a long-term sustainable supply of critical minerals and strengthen India's critical mineral value chains encompassing all stages from mineral exploration and mining to beneficiation, processing, and recovery from end-of-life products.
Introduction
The Government has approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet' with a financial outlay of Rs.7,280 crore. The scheme aims to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity in India, covering the full chain from rare-earth oxides to finished magnets.
By building a domestic integrated ecosystem, the initiative is intended to enhance self-reliance in a critical input for electric vehicles, renewable energy systems, electronics, aerospace and defence, and to position India as a key player in the global REPM market. It also supports broader national objectives, including Atmanirbhar Bharat, resilient supply chains for strategic sectors, and the country's long-term Net Zero 2070 vision.
What is Rare Earth Permanent Magnet (REPM)?
REPMs are amongst the strongest types of permanent magnets and are used extensively in technologies requiring compact and high-performance magnetic components. Their high magnetic strength and stability make them integral to:
The ability of REPMs to deliver strong magnetic performance at small sizes makes them essential for advanced engineering applications. As India expands manufacturing across priority sectors such as clean energy, advanced mobility and defence, establishing a reliable domestic supply of high-performance magnets becomes increasingly important for long-term competitiveness and supply-chain resilience.
India's Current Landscape and Need for the Scheme
India has a substantial base of rare-earth minerals, particularly monazite deposits located across several coastal and inland regions. These deposits contain about 13.15 million tonnes of monazite, holding an estimated 7.23 million tonnes of rare-earth oxides (REO), and occur in coastal beach sands, teri/red sands and inland alluvium in Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra. These oxides serve as the primary raw material for downstream rare-earth industries, including permanent magnet manufacturing.
In addition, 1.29 million tonnes of in-situ REO resources have been identified in hard-rock areas of Gujarat and Rajasthan, while the Geological Survey of India has further augmented 482.6 million tonnes of rare-earth ore resources through extensive exploration initiatives. Together, these assessments demonstrate the availability of substantial raw material resources to support downstream rare-earth-based industries, including REPM manufacturing.
While India has a strong rare-earth resource base, domestic production of permanent magnets is still developing, and imports continue to meet a large part of current requirements. Official trade data indicates that India sourced a major share of its permanent magnet imports from China during 2022-23 to 2024-25, with import dependence ranging between 59.6% and 81.3% value-wise and 84.8% and 90.4% quantity-wise.
Meanwhile, forward demand projections highlight the need for enhanced domestic capability. India's REPM consumption is expected to double by 2030, driven by growth in electric mobility, renewable energy deployment, electronics manufacturing and strategic applications. Developing integrated REPM manufacturing capacity is therefore essential to support rising domestic requirements and strengthen supply-chain resilience.
Core Elements of the Scheme
The scheme establishes a comprehensive framework for end-to-end REPM manufacturing in India, supporting both initial capacity creation and long-term competitiveness.
National Priorities and Alignment with Broader Government Initiatives
The establishment of domestic REPM manufacturing capacity supports several national priorities, as these magnets are essential for strategic and high-technology sectors that are central to India's industrial and technological advancement. The Governments' initiative aims to strengthen domestic production, enhance supply-chain resilience for rapidly expanding industries while also contributing to India's long-term sustainability goals.
Global Context and India's Opportunity
Global supply chains for rare-earth materials and permanent magnets have experienced periods of disruption, highlighting the importance of secure and diversified access to these resources. India has also undertaken several measures to support long-term supply security, including policy reforms and targeted domestic capability-building efforts.
The Ministry of Mines has entered into bilateral agreements with mineral-rich countries including Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi and Cote d'Ivoire. India also participates in multilateral platforms such as the Minerals Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF) and the initiative on Critical and Emerging Technologies (iCET), which collectively support efforts to build resilient critical minerals supply chains.
Complementing these efforts, Khanij Bidesh India Limited (KABIL) is engaged in overseas exploration and acquisition of strategic mineral assets, including lithium and cobalt, through partnerships in countries such as Argentina. These initiatives form a key component of India's strategy to secure critical minerals required for electric mobility, renewable energy systems, electronics and defence applications.
Against this backdrop, the development of domestic REPM manufacturing capacity offers India a timely opportunity to strengthen its position in global value chains for advanced materials while supporting industrial growth at home.
Conclusion
The Scheme to promote manufacturing of Sintered Rare Earth Permanent Magnets (REPM) is designed to enhance competitiveness, attract technology-driven investment and support long-term scalability. It also contributes to India's energy-transition goals, given the role of these materials in high-efficiency systems. By establishing domestic capability and strengthening downstream linkages, this Government's initiative will help generate employment, deepen industrial capacity and support the vision of Atmanirbhar Bharat and Viksit Bharat @2047.
PIB Research
References
Ministry of Heavy Industries
https://www.pib.gov.in/PressReleasePage.aspx?PRID2194687®3&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID2151394®3&lang2
https://heavyindustries.gov.in/sites/default/files/2025-08/rsauq_1563.pdf?utm
https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID2112232®3&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID2151394®3&lang2
Ministry of Mines
https://www.pib.gov.in/PressReleasePage.aspx?PRID2120525®3&lang2
mines.gov.in/admin/storage/ckeditor/NCMM_1739251643.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID2114467®3&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID1945102®3&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID1845346®3&lang2
Ministry of Education
https://satheeneet.iitk.ac.in/article/physics/physics-rare-earth-magnets/?utm
Department of Atomic Energy
https://www.pib.gov.in/PressReleasePage.aspx?PRID2147282®3&lang2
Click here to see pdf
Disclaimer: Curated by HT Syndication.
