Indian firms eye domestic rare earth magnet production
India is gearing up to start making rare earth magnets at home within two years, hoping to break free from relying on China (which currently processes about 90% of the world's rare earths).
This push comes after recent Chinese export restrictions messed with supplies for electric vehicles and electronics, making self-sufficiency a bigger priority.
Government plans $290 million incentive program
To get things rolling, the government is planning a ₹25 billion ($290 million) incentive program. Companies like Mahindra & Mahindra and Uno Minda are already interested.
The plan? Give private firms two years to set up and five years of financial support—if they commit to using mostly Indian-made magnet components.
Magnet parts to be sourced locally
At first, companies will need to source at least half their magnet parts locally, ramping up to 80% by year five.
This isn't just about tech—it's about securing steady supplies for India's growing EV scene and staying strong if global tensions flare up again.
If all goes well, it could mean more jobs, less import drama, and a big step forward for Indian manufacturing.