Government Targets 5,000 Tonnes Rare Earth Magnet Production by 2030
India has intensified its efforts to strengthen domestic capabilities in rare earth permanent magnet production and critical mineral exploration, particularly lithium. Addressing the Lok Sabha during the Question Hour of the ongoing Budget Session, Union Minister of State (Independent Charge) for Science & Technology and Earth Sciences, and MoS PMO, Dr. Jitendra Singh, announced that the government aims to scale up the country’s rare earth magnet production capacity to 5,000 tonnes by 2030.
Currently, India’s annual requirement for rare earth permanent magnets stands at around 4,000 tonnes. However, demand is expected to grow significantly, reaching nearly 8,000 tonnes by 2030. Consequently, the government is accelerating initiatives to expand domestic production and reduce import dependence.
Pilot Projects and Manufacturing Expansion Underway
To strengthen indigenous manufacturing, the government has launched a pilot project for neodymium–iron–boron (NdFeB) permanent magnets, a critical component widely used in modern technologies.
In addition, a samarium–cobalt magnet production plant in Visakhapatnam has already become operational with an initial production capacity of 500 tonnes per year. According to Dr. Singh, this capacity will gradually increase to 2,000 tonnes in the next phase and eventually expand to 5,000 tonnes by 2030.
These initiatives represent a major step toward building a strong domestic ecosystem for rare earth magnet manufacturing.
Whole-of-Government Approach to Critical Mineral Development
As reported by pib.gov.in, Dr. Jitendra Singh emphasized that the government is adopting a whole-of-government strategy to fast-track exploration and development of critical minerals. Multiple ministries are coordinating closely to accelerate surveys, mining activities, and value chain development.
This integrated approach aims to ensure that India builds long-term capabilities in critical mineral supply chains, which are essential for modern industry and energy systems.
Lithium Exploration Gains Momentum in Rajasthan and Jammu & Kashmir
Responding to a question raised by Smt. Mahima Kumari Mewar regarding lithium reserves in Degana, Rajasthan, the Minister confirmed that preliminary survey activities are already underway. Furthermore, detailed exploration is expected to begin in the near future.
Dr. Singh clarified that lithium exploration falls under the Ministry of Mines, which is also conducting similar exploration initiatives in Reasi district of Jammu & Kashmir, another region believed to hold potential lithium deposits.
Strategic Importance of Rare Earth Elements and Lithium
The Minister highlighted that rare earth elements and lithium are critical raw materials for several emerging and strategic industries. These include:
- Electric vehicles (EVs)
- Renewable energy technologies
- Electronics and semiconductor manufacturing
- Defence and aerospace systems
- Space technologies
Moreover, these minerals will play a crucial role in supporting India’s clean energy transition and the development of advanced technologies that require reliable and efficient energy storage systems.
Policy Reforms to Encourage Private Sector Participation
To further accelerate exploration and production, the government has introduced several policy reforms. Notably, provisions under the Atomic Energy (Amendment) framework now allow private sector participation in the exploration of certain critical minerals.
At the same time, the government continues to maintain safeguards for strategic resources such as uranium, ensuring that national security interests remain protected.
Development of Rare Earth Processing Corridors
In order to strengthen the domestic value chain, the government has announced the establishment of rare earth processing corridors in several states. These include:
- Tamil Nadu
- Odisha
- Andhra Pradesh
- Kerala
These corridors aim to promote processing, refining, and value addition, thereby enabling India to move beyond raw mineral extraction and build a comprehensive rare earth industry ecosystem.
Geological Challenges and Resource Distribution
Dr. Singh explained that rare earth elements occur in two primary geological forms—beach sand minerals and rock formations. As a result, exploration strategies vary depending on the geological conditions.
Certain states, including Rajasthan, Gujarat, and Jharkhand, contain rock-based mineral deposits, which often require more complex exploration and extraction techniques.
Environmental Safeguards and Regulation
Addressing concerns related to environmental impact, the Minister clarified that mining regulations and environmental safeguards fall under the Ministry of Mines and associated regulatory authorities.
He also stressed the importance of preventing illegal mining activities, while ensuring that exploration and extraction processes follow established environmental and regulatory standards.
Strengthening India’s Critical Mineral Supply Chain
In conclusion, Dr. Jitendra Singh stated that India is steadily strengthening its position in the critical minerals sector. By expanding domestic production, accelerating exploration, and implementing supportive policy reforms, the country aims to reduce import dependence and build a resilient supply chain.
These efforts are expected to play a vital role in supporting future industrial growth, clean energy development, and technological innovation in India.
