Media reports India to manufacture rare earth magnets locally
(MENAFN) India has introduced a $156 million subsidy program aimed at establishing local production of rare earth magnets, following China’s recent restrictions on rare earth exports, according to a report by Moneycontrol on Friday.
Although India holds the world’s third-largest reserves of rare earth elements, less than 20% of these resources have been explored so far. India's Minister of Heavy Industries and Steel, H.D. Kumaraswamy, stated that initially, two manufacturers are expected to participate, but this number may grow as the scheme develops.
An official from the ministry explained that subsidies will be offered to manufacturers capable of handling end-to-end processing, from converting rare earth oxides into finished magnets. The program seeks to incentivize both private sector companies and state-owned enterprises to build domestic supply chains for these crucial components.
India Rare Earth Limited, a state-run company, is expected to play a key role by supplying 500 tons of raw materials to companies producing magnets, according to Moneycontrol. Major firms like Vedanta Group, JSW Group, and Sona BLW Precision Forgings Ltd. have expressed interest in participating, Bloomberg reported.
India has accelerated efforts to produce these magnets, which are essential in electric vehicles, generators, and hard drives, after China announced tighter export controls in April. Currently, China dominates the global market, supplying around 60% of the world’s rare earth magnets. Under its new rules, Chinese exporters must secure licenses and confirm the materials won’t be used in defense or sent to the US.
Indian experts have urged the government to strengthen domestic production, citing the magnets’ importance for the renewable energy sector as well. During the 2024-2025 fiscal year, India imported 53,748 tons of rare earth magnets, according to the Economic Times.
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