India’s new ₹7,280-crore magnet scheme promises self-reliance for EVs, wind power and defence. ABC Live finds it builds vital manufacturing capacity but still leaves India dependent on imported materials unless a follow-up mission secures mining, refining, patents and recycling.
New Delhi (ABC Live): India Self-Reliant in REPMs: On 26 November 2025, the Union Cabinet approved a ₹7,280-crore scheme to build India’s first domestic industry for rare-earth permanent magnets (REPMs). These magnets power EV motors, wind turbines, drones, missiles, satellites, medical devices, and precision electronics.
The official Press Information Bureau (PIB) release (PRID: 2194687) confirms that the government will support the creation of 6,000 metric tonnes per year (MTPA) of REPM manufacturing capacity. It also confirms that the scheme will support the conversion of rare-earth oxides into metals, metals into alloys, and alloys into finished magnets.
Clearly, this policy is a major step.
However, the key question remains: Does 6,000 MTPA make India self-reliant, or does it only delay dependence?
What the Scheme Does — and Why It Matters
✔️ PIB confirms integrated manufacturing, not just machining.
✔️ Capex + sales incentives lower the risk for new manufacturers.
✔️ Up to five companies may receive support through bidding.
Incentive Structure
| Component | Amount |
|---|---|
| Sales-linked incentive | ₹6,450 crore |
| Capital subsidy | ₹750 crore |
| Total Outlay | ₹7,280 crore |
Why This Is Important
Until now, India has relied heavily on imported REPMs. Without them:
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EVs run less efficiently,
-
wind turbines lose power,
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defence systems lose reliability,
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Electronics lose performance.
In simple terms, magnets are the hidden gear of both clean energy and national security.
Where India Stands in the Global Magnet Race
| Country/Region | Global Magnet Share |
|---|---|
| China | 85–90% |
| US + EU combined | <10% |
| India after this scheme | ~2–3% |
Although India holds sizeable rare-earth reserves, it still lacks refining, metallurgical alloying, surface coating, and heavy rare-earth security, all of which are essential for magnet-grade production. These upstream gaps were detailed in our earlier report:
🔗 ABC Live Explained: How India Is Building Rare Earth Technology Capacity
https://abclive.in/2025/07/24/india-ree-technology/
Moreover, China dominates because it controls the entire chain — from rare-earth separation to magnet coating to motor and actuator assembly.
👉 Therefore, building only one stage does not create real independence.
India’s Future Demand Will Outgrow the Scheme
Based on ABC Live demand modelling:
| Year | India’s Demand (Tons) | Scheme Capacity | Deficit |
|---|---|---|---|
| 2027 | 10,700 | 6,000 | -4,700 |
| 2030 | 17,100 | 6,000 | -11,100 |
| 2035 | 30,300 | 6,000 | -24,300 |
Even with perfect execution, India will meet only around one-third of its magnet needs by 2030.
As a result, import dependence will return unless more capacity and upstream action are taken.
What the Scheme Misses — The Blind Spots
| Critical Area | Included? | Why It Matters |
|---|---|---|
| Mining & refining | ❌ No | Factories need high-purity oxides and metals |
| Heavy rare-earth security | ❌ No | Needed for EV and defence heat resistance |
| Recycling & urban mining | ❌ No | Can supply up to 25% by 2035 |
| Patent + technology access | ❌ No | China & Japan hold key magnetic IP |
| Metallurgy R&D | ❌ No | Needed to make high-grade magnets |
| ESG waste management | ❌ No | Refining creates radioactive waste |
Result: India may build factories, but import the inputs to run them.
This is not self-reliance; it is reshaped dependency.
Why ABC Live Is Publishing This Report Now
The PIB announcement focuses on incentives and capacity. Yet, no major analysis has measured this capacity against projected national demand. Without doing so, the policy may appear complete when it is actually only a first step.
ABC Live is publishing this report because:
🔸 Self-reliance requires full value chains, not just factories
🔸 Magnets are a national-security tool, not only an EV component
🔸 India has a limited seven-year window before demand overtakes supply
🛰️ A country that builds satellites should not import the magnets that guide them.
What India Needs Next — A Phase-II REPMs-Self-Reliant India
To avoid returning to imports, India must build more than factories. It must build sovereignty.
| Priority | Action | Estimated Cost |
|---|---|---|
| 🇮🇳 Mining + refining | Build high-purity oxide and metal output | ₹8,000–10,000 crore |
| 📜 Patent & technology access | Buy licenses where needed | ₹3,000–4,000 crore |
| ♻️ Recycling + Urban Mining | Recover REEs from waste and EV scrap | ₹1,500–2,000 crore |
| 🌱 ESG & Thorium-safe processing | Safe refining and zero discharge | ₹1,500–2,000 crore |
| ⚙️ Metallurgy Research | Strengthen coatings, sintering, alloys | Long-term |
Only a full value chain creates true independence.
Conclusion: A Strong Start, but Not Yet REPMs-Self-Reliant India
The ₹7,280-crore REPM scheme is a historic beginning. It builds industry where none existed. However:
🔹 It is a launchpad, not self-reliance
🔹 It offers 5–7 years of supply comfort, not permanent security
🔹 It must be followed by mining, refining, R&D, recycling, and expansion
If India does not move quickly, it will electrify its future using magnets made somewhere else.
India does not have a magnet scheme. India has a magnet deadline.
