India Plans Rare Earth Permanent Magnet Production by Year-End With ₹73 Billion Programme

India is moving to start domestic production of rare earth permanent magnets by the end of the year, supported by a ₹73 Billion manufacturing programme designed to reduce reliance on imports and strengthen strategic supply chains, as per Reuters. 

₹73 Billion Manufacturing Plan and 4 Processing Plants 

The government cleared the ₹73 Billion rare earth permanent magnet programme in November to accelerate local production. The mining ministry, along with a state-run body, has developed the required technology and is working with private sector partners to operationalise manufacturing. 

The initiative includes setting up 4 critical mineral processing plants across 4 states. Rare earth permanent magnets are essential for electric vehicles, aerospace, defence and renewable energy applications. 

Mining Minister Kishan Reddy, speaking at an event organised by the Federation of Indian Chambers of Commerce & Industry, said India aims to begin production by year-end in partnership with the private sector. 

6.9 Million Tons of Reserves, Demand to Double By 2030 

India has 6.9 million tons of rare earth reserves, making it the 3rd largest globally, according to the U.S. Geological Survey. Despite this, only a small portion is mined due to limited private investment. 

Domestic demand for rare earth permanent magnets is expected to double by 2030, while current requirements are largely met through imports.  

China accounts for 90% of global processing capacity and had restricted shipments last year, creating supply disruptions for industries including automobile manufacturing 

Read More: India Enters Pax Silica Framework Amid Rising Focus on AI Chip Access! 

Conclusion 

With domestic production targeted by year-end and 4 processing plants planned, India is seeking to strengthen supply security, build private participation and reduce external dependence on critical minerals. 

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