To cut India’s reliance on imports and power up its green tech dreams, the Union Cabinet has approved a Rs 7,280 crore scheme to kickstart homegrown manufacturing of sintered Rare Earth Permanent Magnets (REPM). Announced yesterday, this first-of-its-kind initiative aims to produce 6,000 metric tons per year of these super-strong magnets, which are the hidden heroes behind electric vehicles, wind turbines, fighter jets, and smartphones.
Rare earth magnets might sound like sci-fi stuff, but they’re essential for everything from the motors in your EV to the precision gear in defence equipment. Right now, India imports nearly all of them, mostly from China, which controls over 90% of the global supply. “This scheme will build an end-to-end REPM ecosystem from turning rare earth oxides into metals, alloys, and finally finished magnets,” said Union Minister Ashwini Vaishnaw, adding that it ties perfectly into the Atmanirbhar Bharat drive and our Net Zero by 2070 goal.
With Rs 6,450 crore in sales-linked incentives over five years and Rs 750 crore for capital setup, the plan will lure investors through global bidding, creating jobs and slashing costs for industries like auto, aerospace, and renewables.
The 7 year program, including a two-year ramp-up phase, couldn’t come at a better time. As EV sales zoom past 2 million units this year and wind power targets hit 100 GW by 2030, secure local supplies mean no more supply chain headaches from global disruptions. It also bolsters defence self-reliance – think stronger magnets for missiles and radars. Experts say this could position India as a top exporter, turning a vulnerability into a strength.
Vaishnaw highlighted how the scheme supports key sectors: “It will make our automotive giants more competitive, amp up renewable energy storage, and safeguard aerospace innovation.” Early buzz suggests big players like Tata and Reliance might jump in, with facilities popping up in mineral-rich states.
Sources:
- Prime Minister of India Official Website: Cabinet Approves Rs.7,280 Crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
- PIB India Official X Post: Cabinet Approves Rs.7,280 Crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
- DD News Official X Post: Cabinet Approves Rs.7,280 Crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
