The Union Cabinet approved a ₹7,280-crore scheme to promote manufacturing of sintered Rare Earth Permanent Magnets (REPMs).

About the Scheme

• Objective:
• • Domestic REPM Capacity: Establish 6,000 MTPA integrated REPM manufacturing capacity in India, first-of-its-kind initiative for strategic self-reliance.
  • Strategic Self-Reliance: Intended to reduce import dependence and make India a global player in the REPM value chain.
• Integrated Value Chain: The Scheme covers full production flow: rare earth oxides → metals → alloys → finished magnets.
• Duration: Seven years—two-year gestation + five years of incentive disbursement
• Capacity Allocation: 6,000 MTPA, Five beneficiaries selected competitively, Up to 1,200 MTPA per beneficiary
• Strategic Aim: The Scheme aims to reduce import dependence, secure supply chains for EVs, renewable energy, defence, and electronics, and position India as a key global REPM producer.

Need for the Scheme

• Consumption Growth: India’s consumption of rare earth permanent magnets (REPMs) is expected to double by 2030, driven by EVs, electronics, and renewable energy sectors.
• High Import Reliance: India meets most of its REPM requirements via imports.
• China’s Dominance: China controls global REPM supply and imposed export controls (April 2025) in response to U.S. tariffs, affecting India’s auto supply chains.

Rare Earth Magnets

• Rare earth magnets are powerful permanent magnets made from alloys of rare-earth elements (mainly neodymium, samarium, and dysprosium) that exhibit exceptionally high magnetic strength.
• Types of Rare Earth Magnets
  • Neodymium-Iron-Boron (NdFeB) Magnets
  • Neodymium-Iron-Boron (NdFeB) Magnets
• Key Properties
  • Extremely high magnetic strength and energy density.
  • High coercivity (resistance to demagnetisation).
  • Lightweight and compact, enabling miniaturisation of devices.
  • NdFeB magnets require protective coatings to prevent corrosion.
• China’s Dominance: China is responsible for about 70% of global rare earth metal mining and nearly 90% of rare earth magnet manufacturing.

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Strategic Importance of Rare Earth Magnets

• Traction Motors: NdFeB magnets provide high magnetic strength, improving motor efficiency and power density.
• Essential EV Components: They are used in power steering, braking systems, wiper motors, and other auxiliary systems.
• Essential for Green Energy: REPMs are vital in wind turbines, robotics, industrial machinery, and semiconductor manufacturing.
• National Security: Widely used in aerospace, missile guidance, and defence electronics.

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