The government is in the final stages of rolling out a ₹7,350 crore initiative aimed at spurring domestic production of sintered rare earth permanent magnets (REPMs) and reducing import dependence, according to Business Standard. The move follows China’s April restrictions on REPM exports, which have tightened supply for India’s automobile and electronics sectors.
Scheme to Promote Indigenous REPM Manufacturing
The initiative, expected to be named the Scheme to Promote Sintered Rare Earth Permanent Magnet Manufacturing in India, seeks to establish a fully domestic manufacturing ecosystem with an annual production capacity of up to 6,000 tons. Planned to run for seven years, the scheme aims to build a complete homegrown value chain, converting NdPr (neodymium-praseodymium) oxide into sintered NdFeB (neodymium-iron-boron) magnets—key components for the automobile, electronics, wind energy, and defence industries.
Comprehensive Rare-Earth Magnet Production Process
The REPM manufacturing process involves multiple stages, including:
- Mining and beneficiation
- Processing and extraction
- Refining to rare earth oxide
- Conversion to metal and alloy
- Final magnet manufacturing
Currently, India lacks the technology and infrastructure for the final three steps. These are: converting oxide to metal, metal to alloy, and alloy to magnet.
Incentives for Advanced Manufacturing
As reported by business-standard.com, under the proposed scheme, the government will incentivize facilities capable of handling these advanced stages of production. By supporting domestic capabilities, India aims to strengthen self-reliance in critical magnet production. It also seeks to reduce imports and secure the supply chain for strategic industries.
