India has taken a major strategic step to strengthen its critical mineral ecosystem by approving a ₹7,000 crore scheme to promote domestic manufacturing of sintered rare earth permanent magnets (REPM). The initiative aims to reduce import dependence, enhance industrial self-reliance, and support high-growth sectors crucial for India’s economic and strategic security.
Rare Earth Resource Base in India
India possesses a significant reserve of rare earth elements (REEs), which are classified as critical minerals due to their strategic importance and limited global supply.
Distribution of Rare Earth Minerals
Coastal deposits (monazite-rich beach sands):
Tamil Nadu
Kerala
Andhra Pradesh
Odisha
West Bengal
Inland deposits (red sands and alluvium):
Jharkhand
Gujarat
Maharashtra
These deposits provide a strong raw material base, enabling India to build an integrated rare earth value chain, from extraction to advanced manufacturing.
Scheme for Sintered Rare Earth Permanent Magnets (REPM)
The Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets aims to establish India’s first end-to-end domestic ecosystem for high-value rare earth magnets.
Key Features of the Scheme
Financial outlay: ₹7,000 crore
Target capacity: 6,000 metric tonnes per annum
Value chain coverage:
Rare earth extraction
Processing into rare earth oxides
Conversion into sintered permanent magnets
Rare earth oxides are a critical intermediate input for downstream industries such as magnet manufacturing, electronics and clean energy systems.
Strategic and Industrial Significance
Strategic Importance
Permanent rare earth magnets are essential for:
Electric vehicles (EVs)
Wind turbines
Consumer electronics
Aerospace and defence systems
Economic and Security Dimensions
India is currently highly dependent on imports, particularly from China, which dominates global rare earth processing.
The scheme will:
Improve supply chain resilience
Support energy transition and decarbonisation
Strengthen defence indigenisation
Generate high-skill employment
International Partnerships and National Vision
To complement domestic manufacturing, the Ministry of Mines has signed bilateral agreements with mineral-rich countries such as:
Australia
Argentina
Zambia
These partnerships aim to ensure diversified and secure access to critical minerals.
Alignment with National Goals
The initiative aligns with:
Atmanirbhar Bharat
Viksit Bharat @2047
India’s clean energy and industrial growth objectives
Conclusion
By developing a domestic rare earth magnet ecosystem, India is positioning rare earth minerals as a strategic pillar for long-term energy security, technological leadership and economic resilience.
