India's rare earth ambitions get a boost with big industry backing
domestic manufacturing
of
rare-earth magnets
, a critical component for
electric vehicles
(EVs), wind turbines, and other green technologies. The proposed scheme, with an estimated outlay of up to ₹2,500 crore (around $290 million), has already attracted preliminary interest from major industrial players, according to sources familiar with the matter told
Bloomberg
.
The policy draft is expected to be submitted to the Union Cabinet for approval soon. While the final contours of the plan, including financial allocations, are still under review and could undergo changes, the move signals a significant shift in India's approach to securing
critical mineral supply chains
.
Who all are interested?
Mining conglomerate
Vedanta Group
, led by Anil Agarwal, JSW Group under Sajjan Jindal, and leading EV component manufacturer Sona BLW Precision Forgings are among the companies expressing early interest in participating in the initiative. The programme seeks to reduce India's heavy dependence on China, which currently dominates nearly 90 per cent of global rare earth processing and magnet production.
India's urgency to promote domestic capacity has grown in the wake of China's decision to tighten export controls on rare earths amid escalating trade tensions with the United States. These curbs have disrupted global supply chains, particularly for the automobile industry, which relies on rare-earth magnets for EV motors and hybrid drivetrains.
The proposed Production-Linked Incentive (PLI)-style framework is expected to support investments in mining, refining, and manufacturing of permanent magnets, and could help catalyse India's ambitions to become a competitive global supplier of critical materials.
If implemented, the scheme could not only boost India's self-reliance in advanced manufacturing but also attract global partners looking to diversify away from Chinese-dominated supply chains.
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