India to begin rare-earth magnet production this year.
Government approves ₹7,280 crore integrated manufacturing scheme.
Move aims to cut import dependence and boost EVs.
India will begin production of Rare Earth Permanent Magnets (REPMs) by the end of this year, Union Coal and Mines Minister G Kishan Reddy said on February 19, marking a key step towards self-reliance in critical minerals for electric vehicles and renewable energy sectors.
Speaking at a conference organised by FICCI and Ministry of Mines in New Delhi, Reddy highlighted the government's push under the Aatmanirbhar Bharat initiative to reduce import dependence on rare earth elements.
3 February 2026
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''In this year itself, permanent magnets production will begin in India,'' Reddy asserted.
The announcement comes amid India's focus on securing supplies of neodymium, praseodymium and other rare earths, with the mines ministry auctioning exploration blocks and approving recycling facilities.
The country already faces a shortage of processing units for critical minerals, with processing being a key challenge. To address this gap, the government has identified four states - Andhra Pradesh, Odisha, Maharashtra and Gujarat - for establishing Critical Mineral Processing Plant Parks.
The Gujarat government has already begun work and Andhra Pradesh is ready to proceed. "I will soon meet the chief ministers of Odisha and Maharashtra to discuss setting up these plants," PTI quoted the minister as saying.
He further explained that building a complete value-added chain as it is essential for India to achieve independence in processing critical minerals.
India is taking decisive steps toward self-reliance in critical materials by establishing a domestic ecosystem for REPMs - high-performance magnets essential for electric vehicles, wind turbines, electronics, aerospace and defence.
The government also approved a ₹7,280 crore scheme to develop 6,000 MTPA of integrated REPM manufacturing capacity in November 2025, covering the full value chain from rare-earth oxides to finished magnets.
Global Supply Chain Risks
China currently has an upper hand with over 80% in the global rare earth processing domain and is responsible for a majority of permanent magnet production, according to the International Energy Agency (IEA) and the US Geological Survey (USGS).
As India depends heavily on imports of rare earth elements, India must adopt a multi-pronged strategy combining short-term measures for supply security with medium- and long-term initiatives aimed at developing domestic capabilities and fostering technological leadership, according to the KPMG report published on December 3, 2025.
India is already pursuing trade agreements with mineral-rich nations, fast-tracking import approvals, and acquiring overseas assets such as collaborations with Argentina for lithium and Australia for critical minerals. Domestically, exploration and development of deposits is supported by policy frameworks.
(With inputs from PTI.)
