New Delhi: In a game-changing move to bolster its electric vehicle (EV) ecosystem, India has launched an ambitious Rs 7,280 crore scheme to manufacture rare earth magnets domestically.
Announced by the Ministry of Heavy Industries, the initiative aims to reduce India’s reliance on China, which dominates 90% of the global rare earth magnet supply.
This strategic push positions India as a self-reliant player in the booming EV and renewable energy sectors.
Rare earth magnets, critical for EV motors, wind turbines, and electronics, are vital to India’s green energy goals. The scheme offers financial incentives, including viability gap funding of up to 25% for magnet production projects, alongside support for raw material processing. Approved by the Union Cabinet, it aligns with the Atmanirbhar Bharat vision, targeting 15-20% local value addition in permanent magnets by fostering innovation and economies of scale.
The plan is expected to create 12,500 jobs and catalyse investments worth Rs 20,000 crore over five years. By establishing four to six manufacturing units, India aims to challenge China’s monopoly, ensuring supply chain security for its EV industry, projected to grow exponentially by 2030.
Industry experts hail the move as a catalyst for sustainable growth, with the potential to make India a global magnet hub.
As the world races towards net-zero, India’s bold step strengthens its industrial backbone and signals its resolve to lead in clean energy innovation.