India to Invite Bids by January-End for Rare Earth Magnet Manufacturing Units

As per news report, India is preparing to roll out a major initiative to establish local manufacturing of rare earth permanent magnets, critical to industries like EVs, renewable energy, and defence. Bids under a ₹7,280 crore incentive-driven scheme are likely to be invited by the end of January 2026. 

Government to Open Bids for ₹7,280 Crore REPM Scheme 

India is set to call for bids to set up manufacturing units for rare earth permanent magnets (REPMs) as part of a ₹7,280 crore incentive scheme approved in November 2025. The scheme aims to support the development of 6,000 metric tonnes per annum of integrated REPM manufacturing capacity.  

The draft guidelines are to be released shortly for public comments. Pre-bid consultations are already being initiated as the government looks to finalise the bidding before January-end. 

Indigenous Tech and Securing Raw Material Supply 

The Department of Science and Technology has developed homegrown technology for manufacturing permanent magnets. To ensure continuous supply, India is in talks with suppliers from South America, Africa, the UK, and Australia to secure rare earth oxides.  

Notably, 1 tonne of rare earth oxide enables the production of nearly 3 tonnes of permanent magnets, making the supply agreements crucial for the scheme's success. 

Strategic Move Towards Self-Reliance 

This initiative comes in response to export restrictions from China, which caused disruptions in India's magnet supply chain. Despite conditional resumption of exports by China, India aims to reduce its dependence on a single source.  

The scheme is designed to support technology development, assure domestic manufacturing, and maintain supply chain resilience for critical sectors including electric vehicles, aerospace, defence, and electronics. 

Read More: Cabinet Approves ₹7,280 Crore Scheme to Boost Rare Earth Magnet Manufacturing in India! 

Conclusion 

India’s plan to open bids for REPM manufacturing by end of January 2026 under a ₹7,280 crore scheme marks a critical step toward achieving self-sufficiency in a strategically vital sector. The move addresses both technological capability and secure material sourcing essential for industrial and defence applications. 

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