In a major move to counter China's dominance in the rare earths sector, the Union government announced a Rs 7,280 crore scheme on Wednesday to promote indigenous manufacturing of sintered Rare Earth Permanent Magnets (REPM). India aims to indigenously manufacture 6,000 tonnes of REPMs a year under the seven-year scheme.
In a statement, the Union Ministry of Heavy Industries said a cabinet meeting chaired by Prime Minister Narendra Modi approved the scheme on Wednesday, and the scheme will support the creation of integrated REPM manufacturing facilities, "involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs."
"Driven by the rapidly growing demand from electric vehicles, renewable energy, industrial applications, and consumer electronics, India's consumption of REPMs is expected to double by 2030 from 2025. At present, India's demand for REPMs is met primarily through imports. With this initiative, India will establish its first-ever integrated REPM manufacturing facilities, generating employment, strengthening self-reliance and advancing the nation's commitment to achieve net zero by 2070," it said.
"The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. Each beneficiary will be allotted up to 1,200 MTPA of capacity," the ministry said in a statement.
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"The scheme will promote manufacturing of rare earth permanent magnets. The aim is to create a capacity of 6,000 MTPA (metric tonne per annum)," Information and Broadcasting Minister Ashwini Vaishnaw told reporters after the cabinet meeting.
India's move gains significance after China recently leveraged its dominance in the sector to counter US President Donald Trump's tariffs over its imports. China refines over 90 pc of the world's rare earths and primary supplier to major US companies.
