Government Launches ₹7,300 Crore Scheme to Secure Critical Magnet Supply Chain for EVs and Defence.

In response to supply shortages caused by China’s export restrictions on rare earth magnets, the Union Cabinet recently approved an incentive scheme worth around ₹7,300 crore to promote the manufacturing of sintered rare earth permanent magnets (REPMs) in India.

The initiative aims to strengthen self-reliance by scaling up domestic REPM production, reducing dependence on China, and positioning India as a significant player in the global REPM market. The government expects the scheme to attract over ₹20,000 crore in investments, as REPMs are critical for electric vehicles, mobile devices, aerospace, defence, and electronic toys.

Information and Broadcasting Minister Ashwini Vaishnaw said the scheme targets the creation of a manufacturing capacity of 6,000 tonnes per annum (TPA), adding that actual investments could potentially triple with the incentives provided.