Massive Global Demand Ignites Rare Earth Rush: India Launches ₹7,280 Crore Scheme to Boost Domestic Magnet Manufacturing
A comprehensive assessment of Rare Earth Permanent Magnet (REPM) demand has been finalized by leading national institutions IREL, DMRL, and BARC. This study highlights the critical need for domestic manufacturing capabilities as India projects a substantial requirement for REPM across multiple key sectors over the next decade. The scheme to promote Sintered REPM manufacturing was subsequently approved by the Union Cabinet with an outlay of ₹7,280 Crore.Projecting Future Rare Earth Permanent Magnet Demand
The analysis provides a detailed projection of segment-wise REPM requirements for India slated for 2030. These projections underscore the rapidly expanding role of magnets in modern technology and industrial infrastructure.The estimated demand is projected at 8220 MTPA (Million Tonnes Per Annum). Electric Vehicles (2/3/4 Wheelers) represent a major driver, with a requirement assessed at 3250 MTPA. Wind Turbine sector requires 1800 MTPA for its applications.
Other significant demand drivers include BLDC Fans projected at 980 MTPA and Consumer Electronics, covering Smart Phones & Computers (600 MTPA) and Other Applications (820 MTPA). Industrial Motors require 500 MTPA while Solar-powered Pumps and Elevators Motors/Escalator Motors account for the remaining needs.
Bridging the Manufacturing Gap in Rare Earth Technology
While India possesses strong upstream capabilities in the mining, separation, and oxide refining of Rare Earth Elements (REE), a critical industrial bottleneck remains. The data reveals a noticeable gap in the midstream processing required for magnet production. This includes converting oxides to metal, metal to alloy, and finally alloy to magnet.Geological Survey of India (GSI) has augmented cumulative REE ore resources across the country, totaling 767 million tonnes. However, due to this industrial capability deficit, India is currently dependent on imports for all its sintered NdFeB REPM required for downstream applications.
Government Intervention and Scheme Approval
To address this dependency and strengthen domestic supply chains, a dedicated scheme was approved by the Union Cabinet. This initiative aims to promote the manufacturing of Sintered Rare Earth Permanent Magnet (REPM).The scheme received approval on November 26, 2025, with a financial outlay amounting to ₹7,280 Crore. The formal notification for this essential scheme followed on December 15, 2025. This move solidifies the government’s commitment to mitigating import dependence in strategic magnet technologies.
The information was provided by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma, in a written reply given today in the Lok Sabha.
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