Archive · 28 Nov 2025
India Boosts Rare Earth Magnet Production
India is working hard to make its own rare earth magnets, which are very important for things like electric cars, wind turbines, and defense equipment.
The government has approved a big plan with ₹72.8 billion to help build factories that can make 6,000 metric tons of these magnets every year.
This will help India rely less on China, which currently controls most of the supply.
Three big companies, GMDC, Hindustan Copper, and MOIL, are leading this effort.
They are investing a lot of money to find and process these special materials.
India has some of the biggest deposits of these materials in the world, and the government is working with other countries like Japan, Australia, and the US to share technology and resources.
This is a big step for India to become more self-reliant and important in the global market for these critical materials.
India approved a ₹72.8 billion scheme to boost rare earth magnet manufacturing, aiming to produce 6,000 metric tons annually.
The scheme will run for 7 years, including a 2-year gestation period and 5 years of incentives linked to sales.
Three PSUs—GMDC, Hindustan Copper, and MOIL—are key players in India's rare earth and critical minerals push.
GMDC is developing one of the world's largest rare earth deposits at Ambadungar and has allocated ₹30–40 billion for rare earth projects.
Hindustan Copper plans to triple its mining capacity to 12.2 MMT by FY25 and is diversifying into critical minerals.
- Who
- Indian government, GMDC, Hindustan Copper, MOIL
- What
- Development of rare earth magnet manufacturing capacity
- When
- Scheme approved on 26 November, 2025; bids potentially by January 31
- Where
- India, with global collaboration
- Why
- To reduce dependence on China for rare earth magnets, crucial for EVs, wind turbines, and defense
- Incentive Scheme
- ₹72.8 billion
- Annual Magnet Production Target
- 6,000 metric tons
- Scheme Duration
- 7 years (2-year gestation + 5-year incentives)
- Beneficiaries
- 5 (each with 1,200 MTPA capacity)
- GMDC's Rare Earth Deposit
- Ambadungar, Gujarat
- GMDC's Investment in Rare Earths
- ₹30–40 billion
- Hindustan Copper's Expansion Target
- 12.2 MMT mining capacity by FY25
- MOIL's Manganese Production Goal
- 3.50 MMT by 2030
Sources
India poised to anchor non-china rare earth supply chain, says Sona Comstar MD Vivek Vikram Singh
Kishan Hails Rare Earth Magnets Plan
The ‘China Plus One’ winners: 3 PSUs set to ride India’s massive rare earths push
Opinion | India’s Rs 7,280-Crore Rare Earth Permanent Magnets Push Will Change Manufacturing Forever
No country built rare earths resilience alone. India must take lessons from Japan, Taiwan
Rare Earth Permanent Magnets scheme notification expected by mid December, bidding window in early 2026
