India's Push for Rare-Earth Magnets

Summary Notes on India’s Rare-Earth Permanent Magnets Initiative

Government Policies and Schemes

• Manufacturing Scheme: In November 2025, the Indian government approved a ₹7,280 crore scheme aimed at promoting the manufacturing of Rare-Earth Permanent Magnets (REPMs).
• National Mineral Exploration Trust (NMET): The government provides 100% funding to private agencies for over 4,000 exploration activities related to critical minerals under NMET.
• State Initiatives: Four states—Andhra Pradesh, Odisha, Gujarat, and Maharashtra—have been identified for establishing critical mineral processing plants, strengthening domestic processing and refining capacities.

Economic and Industrial Context

• Dependence on REPMs: The production of high-strength REPMs is vital for technologies such as electric vehicles, renewable energy systems, electronics, aerospace, and defence.
• Current Market Landscape: Over 90% of REPM manufacturing and processing is controlled by China, highlighting the urgency for India to create a more self-sufficient supply chain.

International Engagement

• Bilateral Discussions: Ongoing discussions with the US, France, Canada, and other nations aim to establish an alternative supply chain for critical minerals. This aligns with the US-led FORGED initiative on critical minerals.
• Trade Relations: An interim trade deal between India and the US was recently agreed upon, highlighting the collaborative efforts in mineral sourcing.

Domestic Technological Development

• Indigenous Technology: The Non-Ferrous Materials Technology Development Centre (NFTDC) in Hyderabad has developed tech for domestic REPM production, being shared with private companies for implementation.

Future Objectives

• Strategic Industry Growth: The government's focus on expanding exploration and domestic production capabilities aims at reducing dependence on foreign sources, facilitating value creation within India.

Summary of Key Outcomes

• Strategic Aim: Create a diversified supply chain for critical minerals to prevent monopoly by a single country such as China.
• Infrastructure Development: Establish critical mineral processing capabilities within designated states to enhance domestic operational capacities.

This initiative places India strategically in the global supply chain for critical minerals essential for emerging technologies, aligning with national interests in economic independence and technological advancement.