India is aiming to begin domestic production of rare earth permanent magnets by the end of this year, Union Minister G. Kishan Reddy said on Monday, as part of expanded efforts to strengthen the country’s rare earth and critical materials ecosystem.
Speaking on the sidelines of an industry event, the minister emphasised the strategic importance of rare earth elements, key components in advanced technologies including electric vehicles, renewable energy turbines, defence applications and high-performance electronics. Permanent magnets, in particular, are essential for efficient electric motors and generators used across clean technology sectors.
Reddy said that production efforts will focus on building value-added capabilities beyond raw mineral extraction, enabling India to capture more of the downstream manufacturing value chain. The domestic magnet production initiative is expected to reduce reliance on imports and foster resilience in supply chains for high-technology and clean energy applications.
The government has been pursuing policies to develop rare earth processing and manufacturing infrastructure, including investment incentives, regulatory support and strategic partnerships with industry and research institutions. Officials noted that aligning production targets with market demand will be important to ensure competitiveness and long-term sustainability.
India has considerable rare earth reserves, but much of its capacity has historically been limited to mineral recovery rather than advanced downstream manufacturing. Establishing domestic production of permanent magnets is expected to provide a boost to sectors such as electric mobility, renewable energy, aerospace and defence manufacturing.
Industry experts welcomed the announcement, saying that moving up the value chain towards finished products like magnets could create jobs, attract technology investments, and support broader ambitions to become a global hub for advanced materials and components.
Reddy also highlighted the potential for collaboration with international partners under frameworks that balance technology transfer with domestic capacity building. The government is reportedly engaging with stakeholders to align incentives and expedite project execution timelines.
By targeting operational rare earth permanent magnet production by year-end, India seeks to carve out a competitive position in a segment increasingly prioritised under global supply chain diversification strategies.
