India Targets Strategic Self-Reliance in Rare Earth Permanent Magnets
The Union Cabinet has approved a ₹7,280 crore Rare Earth Manufacturing Programme, marking a major step toward strengthening India’s industrial and strategic capabilities. The government described the initiative as a first-of-its-kind scheme aimed at boosting domestic production of sintered rare earth permanent magnets, a critical component for electric vehicles, renewable energy, electronics, aerospace and defence.
The programme, officially titled the Scheme for Promotion of Manufacturing of Sintered Rare Earth Permanent Magnets, seeks to scale up India’s production capacity to 6,000 metric tonnes per annum (MTPA).
Why Rare Earth Magnets Matter
Addressing the media on Wednesday, Information and Broadcasting Minister Ashwini Vaishnav highlighted the importance of rare earth permanent magnets, calling them among the strongest permanent magnets in the world.
“These magnets are crucial for electric mobility, renewable energy, electronics, aerospace and defence applications,” Vaishnav said, adding that the scheme will help establish integrated manufacturing facilities across the value chain.
These facilities will cover:
- Conversion of rare earth oxides into metals
- Processing metals into alloys
- Manufacturing finished rare earth permanent magnets
Rising Demand and India’s Import Dependence
The renewed focus on rare earth materials comes amid a surge in demand driven by electric vehicles, wind energy, industrial automation and consumer electronics.
Currently, India meets most of its requirements through imports. In the financial year ending March 2025, the country imported 53,000 metric tonnes of rare earth magnets.
China dominates the global supply of rare earth elements. In April, following tariff actions by the United States, China tightened export rules on rare earth magnets, triggering global concern over supply-chain vulnerabilities.
What Are Rare Earth Magnets?
Rare earth magnets are a class of high-performance permanent magnets made from alloys containing rare earth elements. An alloy—known in Hindi as Mishra Dhatu—is a metal formed by mixing two or more metals.
According to the Ministry of Education’s Saathi portal, rare earth magnets are known for:
- High magnetic strength – strong attraction or repulsion
- High coercivity – resistance to demagnetisation
- High energy product – ability to store large amounts of magnetic energy
Their exceptional performance comes from rare earth elements that contain unpaired electrons, generating strong magnetic fields and stable atomic alignment.
Where Are Rare Earth Magnets Used?
Rare earth magnets are found in a wide range of everyday and advanced technologies, including:
- Electric motors and generators
- Hard disk drives
- Magnetic Resonance Imaging (MRI) machines
- Headphones and microphones
- Magnetic separators and bearings
- Wind turbines and electric vehicles
- Magnetic jewellery
How Rare Earth Magnets Are Made
The manufacturing process is complex and involves several stages:
1. Mining and Refining
Rare earth elements are extracted from minerals such as bastnasite, monazite and xenotime, followed by chemical processing to isolate usable elements.
2. Alloying
Rare earth metals are combined with iron, boron, cobalt or other metals and melted together to form magnetic alloys.3. Sintering
The magnets are heated to high temperatures without melting, strengthening their structure and improving durability.4. Magnetising
The final product is exposed to a strong magnetic field, aligning magnetic domains and making the magnet fully functional.Main Types of Rare Earth Magnets
Neodymium Magnets
Made from neodymium, iron and boron, these are the most widely used rare earth magnets. They are extremely strong but can be brittle.
Used in:
Electric motors, generators, hard disks, MRI machines, loudspeakers, toys and headphones.
Samarium-Cobalt Magnets
These magnets are less powerful than neodymium magnets but highly resistant to heat and corrosion.
Used in:
Aerospace, automotive, medical, military and industrial applications.
Other Rare Earth Magnet Variants
- Dysprosium magnets: Highly resistant to high temperatures
- Holmium magnets: Magnetically softer and used for specialised applications
Rare earth magnets can also be recovered through recycling of used electronic products, helping reduce environmental impact.
A Strategic Push for the Future
With rare earth magnets forming the backbone of modern technology—from smartphones to wind turbines—the Cabinet’s approval of the ₹7,280 crore programme signals India’s push toward self-reliance, supply security and technological leadership.
As global competition for critical minerals intensifies, the new scheme could play a decisive role in reshaping India’s position in the global rare earth supply chain.
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