Thursday 03 / September / 2026
New Delhi: India is stepping up efforts to build a domestic rare-earth permanent magnet industry, targeting a key component used in electric vehicles, wind turbines, electronics, aerospace and defence systems.
The Ministry of Heavy Industries received 20 bids for setting up integrated rare-earth permanent magnet manufacturing facilities, including from Larsen & Toubro, Coal India, ReNew, Attero Recycling, Lohum Magnets & Energy Solutions, NEO Performance Materials and Proterial India.
The initiative follows the Indian Union Cabinet’s approval in November 2025 of a ₹7,280-crore scheme to establish 6,000 tonnes per annum of integrated sintered NdFeB magnet capacity. Up to five companies will be selected, with each eligible for a maximum capacity of 1,200 tonnes per annum.
The programme aims to build a domestic value chain from rare-earth oxides and NdPr materials to finished magnets, reducing dependence on overseas supply chains while supporting India’s electric mobility, renewable energy, electronics and defence ambitions.
India has substantial rare-earth resources, with about 7.23 million tonnes of rare-earth oxide equivalent contained in monazite resources, according to government data.
The push is also part of the broader National Critical Mineral Mission, which seeks to strengthen exploration, processing, recycling and manufacturing of critical minerals.
With dedicated rare-earth corridors planned in Odisha, Kerala, Andhra Pradesh and Tamil Nadu, India is seeking to turn its mineral resources into a strategic manufacturing capability.
