India Plans Big Boost for Rare Earth Magnet Manufacturing With New 7280 Crore Scheme

Mumbai(Maharashtra)[India] November 26: When the Union Cabinet approved a 7280 crore scheme for sintered rare earth permanent magnets, many experts said that this step can shape India’s future in technology. Rare earth magnets are used in electric vehicles, aeroplanes, phones, medical machines and defence tools. These magnets are not easy to make because the metals come mostly from a few countries. India now wants to reduce this gap and build its own strong base.

Why Rare Earth Magnets Matter

Rare earth magnets became famous around the late twentieth century. It is when industries started using them in motors and sensors. Countries like China grew quickly in this sector and became leading suppliers. India has its own mineral deposits but the production has been low for many years. With this new plan, the target is to build a capacity of 6000 metric tonnes per year so that industries inside India do not have to depend much on imports.

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Plan Details and Allocation

The Cabinet said that the total capacity will be divided among five selected companies. The government will choose them through a global bidding process so that only capable groups take part. Each company will get up to 1200 metric tonnes per year. The scheme will run for seven years. The first two years are for setting up factories and the next five years are for giving incentives on the sale of rare earth permanent magnets.

Industry Background and Opportunities

India has been using rare earth materials since early space research days, but large scale magnet production never took off due to limits in technology and investment. Many young engineers today study how magnets power electric motors and robotics. With the global shift towards clean transport, India sees a chance to enter the world market. This new scheme is expected to help startups, researchers and manufacturers who want to build better tools and machines inside the country.

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Expected Impact on India

Experts believe that the new plan can bring skilled jobs, more factories and long term growth. Electric vehicle makers will benefit the most because they often face shortages of good quality magnets. Defence and medical industries may also save money by buying products made inside India. By building rare earth magnet capacity, India hopes to become a trusted global supplier in the coming decades. The move shows how important these special materials are for the future of every modern device.