New Delhi: India is taking firm and coordinated steps towards achieving self-reliance in critical materials, positioning itself as a reliable and competitive participant in advanced materials value chains. Through a combination of domestic initiatives and global engagement, the country is building a comprehensive ecosystem for Rare Earth Permanent Magnets (REPMs), according to an official statement released on Tuesday.
The Rs 7,280 crore REPM Manufacturing Scheme, along with the Union Budget 2026–27 announcement of Dedicated Rare Earth Corridors, provides an integrated framework covering mining, processing, research, and manufacturing. Under the Budget, Dedicated Rare Earth Corridors will be established in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to boost the entire rare-earth value chain.
Rare Earth Permanent Magnets are among the most powerful permanent magnets, valued for their high magnetic strength, stability, and compact size. These characteristics make them critical for advanced applications, including electric vehicle motors, wind turbine generators, consumer and industrial electronics, aerospace systems, defence equipment, and precision sensors.
India has a substantial reserve of rare-earth minerals, offering a strong base for downstream industries such as REPM manufacturing. The country holds about 13.15 million tonnes of monazite, containing an estimated 7.23 million tonnes of rare-earth oxides (REO). These reserves are spread across states including Odisha, Kerala, Andhra Pradesh, Tamil Nadu, West Bengal, Gujarat, Maharashtra, and Jharkhand, largely in coastal beach sands, teri or red sands, and inland alluvial deposits.
Additionally, around 1.29 million tonnes of in-situ REO resources have been identified in hard-rock regions of Gujarat and Rajasthan. The Geological Survey of India has further strengthened the resource base by identifying 482.6 million tonnes of rare-earth ore across 34 exploration projects.
Despite this strong resource potential, India’s domestic production of permanent magnets remains at a nascent stage, with imports—primarily from China—meeting the majority of demand. Between 2022 and 2025, imports accounted for nearly 60–80 per cent of demand by value and 85–90 per cent by volume.
With demand for Rare Earth Permanent Magnets expected to double by 2030, driven by rapid growth in electric mobility, renewable energy, electronics, and defence sectors, the statement emphasised the need for India to scale up domestic capabilities. Expanding investment in this sector is seen as crucial to reducing import dependence and ensuring long-term strategic self-reliance.
With inputs from IANS