Cabinet Clears ₹7,280-Cr Rare Earth Magnet Mission to Cut Imports, Power Clean-Tech Future
New Delhi: In a major push for strategic manufacturing, the Union Cabinet has cleared a ₹7,280-crore mission to build India’s first integrated ecosystem for producing sintered Rare Earth Permanent Magnets (REPMs)—a core component for electric mobility, clean-energy tech, electronics, and aerospace.
In a statement, the government called the scheme a “first-of-its-kind effort to create 6,000 MTPA of REPM manufacturing capacity in the country,” aimed at dramatically reducing imports while positioning India as a serious contender in the global magnet supply chain.
Cabinet approved first-of-its-kind Rare Earth Permanent Magnets (REPM) Scheme, to achieve Aatmanirbharta in permanent magnet manufacturing.
➡️ ₹7,280 Cr incentive | 7-year duration✅ End-to-end value chain: oxides → metals → alloys → finished REPMs
✅ Total capacity:… pic.twitter.com/oiQ9ltaKhi— Ashwini Vaishnaw (@AshwiniVaishnaw) November 26, 2025
REPMs—among the world’s strongest permanent magnets—are crucial to EV motors, wind turbines, consumer electronics, satellites, military systems and high-end industrial technologies. Demand in India is expected to double by 2030, but currently almost all of it is met through imports, making domestic industries dependent on foreign suppliers.
Under the new scheme:
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₹6,450 crore will be offered as sales-based incentives over five years
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₹750 crore will be provided as capital subsidy to set up manufacturing capacity
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Production capacity will be distributed to five manufacturers, each receiving up to 1,200 MTPA
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The scheme will run seven years: two for plant establishment, followed by five for incentives
The facilities will produce magnets end-to-end—starting from rare earth oxides, moving to metals, then alloys, and finally finished magnets—creating an indigenous supply chain for India’s EV, defence and clean-energy sectors.
This landmark mission is expected to drive advanced manufacturing, create skilled jobs, boost high-tech exports, and support India’s long-term climate goals—including the pledge to achieve Net Zero emissions by 2070.
