TL;DR
India's Cabinet approved a ₹7,280 crore scheme to boost domestic manufacturing of rare earth permanent magnets, crucial for EVs and clean energy, aiming to secure supply chains and reduce imports.
In a strategic move to bolster its electric vehicle (EV) and clean energy sectors, India's Union Cabinet has approved a ₹7,280 crore scheme aimed at promoting domestic manufacturing of sintered rare earth permanent magnets (REPMs). This initiative is crucial for securing supply chains, as India currently relies heavily on imports for its REPM requirements, which are projected to double between 2025 and 2030 due to surging demand from EVs, industrial applications, and electronics.
The scheme, the first of its kind in India, seeks to establish an integrated REPM manufacturing capacity of 6,000 metric tonnes per annum. It includes ₹6,450 crore in sales-linked incentives over five years and a ₹750 crore capital subsidy for setting up facilities covering the entire value chain, from rare earth oxides to finished magnets. Industry leaders, including the President of SIAM, Shailesh Chandra, have lauded this scheme as a significant step towards building a resilient supply chain, accelerating clean mobility adoption, and enhancing the nation's energy security by reducing dependence on crude oil imports.
