In a landmark move to fortify India’s technological sovereignty and reduce import dependence, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a ₹7,280 crore scheme to promote the domestic manufacturing of sintered Rare Earth Permanent Magnets (REPM). This first-of-its-kind initiative aims to establish 6,000 metric tons per annum (MTPA) of integrated production capacity, targeting critical sectors like electric vehicles (EVs), renewable energy, aerospace, and defence.
The scheme marks a significant step under the Atmanirbhar Bharat Abhiyan and aligns with India’s Net Zero 2070 commitments. Rare Earth Permanent Magnets, essential components in high-efficiency motors and generators, are currently heavily imported, with global demand projected to double by 2030 from the 2025 levels. By fostering an end-to-end ecosystem, from converting rare earth oxides to metals, alloys, and finished magnets, the program aims to position India as a global leader in this strategic mineral value chain.
Under the seven-year plan, which includes a two-year gestation period for facility setup, the government will disburse ₹6,450 crore in sales-linked incentives over five years, alongside ₹750 crore in capital subsidies. Five beneficiaries will be selected through a global competitive bidding process, each allocated up to 1,200 MTPA of capacity, totalling an aggregate of 6,000 MTPA of REPM manufacturing facility.
“This first-of-its-kind initiative aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market,” a press release by the Union Cabinet stated. The move is expected to generate substantial employment opportunities, bolster indigenous innovation, and support the EV ecosystem, where REPMs are crucial for efficient battery systems and traction motors.
PM Modi hailed the move, calling it “a historic first for India’s high-tech manufacturing.”
A historic first for India’s high-tech manufacturing!
— Narendra Modi (@narendramodi) November 26, 2025
The Union Cabinet has approved a scheme to establish India's first integrated ecosystem for manufacturing Sintered Rare Earth Permanent Magnets (REPM), which are essential components in electric vehicles, wind turbines,…
This initiative by the Government of India is a landmark step towards strengthening the domestic REPM manufacturing ecosystem and enhancing competitiveness in the global markets. By fostering indigenous capabilities in REPM production, the scheme will not only secure the REPM supply chain for domestic industries but also support the nation’s Net Zero 2070 commitment. It embodies the Governments unwavering commitment to build a technologically self-reliant, globally competitive, and sustainable industrial base, in line with the vision of Viksit Bharat @2047, said the press release.
