Archive · 11 Aug 2026

L&T Plans India Rare-Earth Magnet Manufacturing to Reduce China Dependence

L&T Plans India Rare-Earth Magnet Manufacturing to Reduce China Dependence

Some special materials called rare-earth magnets are used to make things like electric cars, wind turbines, and robots.

Almost all of these magnets in the world, about 90 out of every 100, are made by China.

China has recently started restricting how many of these materials it sends to other countries.

So India wants to make its own magnets instead of depending on China.

An Indian company called Larsen & Toubro, or L&T, wants to help with this.

The Indian government has created a big money programme worth ₹7,280 crore to encourage companies to make these magnets at home.

About 15 companies have already applied to join this programme.

L&T would need to team up with a technology partner that knows how to make these very precise magnets.

L&T also wants these magnets for electric vehicles, since they are key parts of electric car motors.

If India makes its own magnets, it will have a safer and more independent supply.

Sources