India has set a target to build domestic production capacity of 5,000 tonnes per year for rare earth permanent magnets by 2030. The move aims to reduce heavy dependence on imports for these critical materials.
Union Minister Dr. Jitendra Singh shared the plan while speaking about progress in rare earth and lithium exploration. Production will start small and grow in steps: 500 tonnes per year in the first phase, then rise to 2,000 tonnes by 2028, and reach 5,000 tonnes by 2030.
India currently needs about 4,000 tonnes of these magnets each year. Demand is expected to grow to around 8,000 tonnes by 2030 because of rising use in electric vehicles, wind turbines, electronics, and defence equipment.
Dr. Jitendra Singh said the government is working to develop full supply chains inside the country. He noted that even with 5,000 tonnes of local output, India will still need to import some magnets to meet total demand.
The plan forms part of a larger government scheme approved last year with an outlay of about ₹7,280 crore. It supports private companies to set up integrated manufacturing from rare earth oxides to finished magnets. The scheme also includes research and exploration efforts to find and process more rare earth materials within India.
Rare earth permanent magnets are strong, lightweight magnets used in electric motors and many high-tech devices. India has large deposits of rare earth minerals but has relied mostly on imports, especially from China, for processed materials and finished magnets.
This target supports India’s goals for clean energy, electric mobility, and self-reliance in strategic sectors. It also aims to create new jobs and build a stronger supply chain for critical minerals. The government continues to invite private firms to join the effort and speed up local production.
