The government has received 20 bids from domestic and international companies to establish integrated manufacturing facilities for sintered neodymium-iron-boron (NdFeB) rare earth permanent magnets (REPMs). The response marks a significant step towards reducing India’s dependence on imported rare earth magnets, which are critical for industries such as electric mobility, renewable energy, electronics and advanced manufacturing.
Major Companies Join the Bidding
The Ministry of Heavy Industries (MHI) opened the technical bids after receiving applications through the government’s e-procurement portal. The bidders include Larsen & Toubro, Coal India, 20 Microns, Attero Recycling, Lohum Magnets & Energy Solutions, Prozeal Green Energy, Singapore-based NEO Performance Materials, Proterial (India), PrNd Metal and Magnets, and the Midwest Energy–Midwest Advanced Materials joint venture, among others. The participation of both established industrial companies and specialised materials firms highlights growing interest in developing India’s domestic rare earth magnet manufacturing capabilities.
₹7,280 Crore Scheme Targets 6,000 MTPA Capacity
The Union Cabinet approved the rare earth permanent magnet manufacturing scheme in November 2025 with a total financial outlay of ₹7,280 crore. The programme aims to establish 6,000 metric tons per annum (MTPA) of integrated REPM manufacturing capacity in India. Under the scheme, the government will select five beneficiaries through global competitive bidding, with each beneficiary eligible to establish up to 1,200 MTPA of capacity.
Building an Integrated Rare Earth Value Chain
The scheme will run for seven years, comprising a two-year gestation period for establishing manufacturing facilities followed by five years of incentives linked to REPM sales. Importantly, the programme aims to develop an integrated domestic value chain covering the conversion of neodymium-praseodymium (NdPr) oxide into finished rare earth magnets. By developing capabilities across the value chain, India aims to improve supply security and reduce exposure to global disruptions in critical mineral and magnet markets.
Supporting India’s Clean Energy and Manufacturing Goals
The government expects the initiative to strengthen domestic supply chains for critical industries while improving India’s competitiveness in the global rare earth permanent magnet market. Increased domestic REPM production could support strategic sectors including electric vehicles, wind energy, electronics and advanced industrial technologies. As reported by msn.com, the programme aligns with India’s broader clean-energy objectives and is expected to contribute to the country’s target of achieving net-zero emissions by 2070.
