India Plans Domestic Production of Permanent Magnets Within Two Years

India is preparing to begin domestic production of permanent magnets within the next two years to reduce reliance on imports. The announcement was made by Hanif Qureshi, Additional Secretary at the Ministry of Heavy Industries, during the 5th Global Electrification Mobility Summit.

The government has recently launched a 7,280 crore scheme to promote local manufacturing of rare earth materials and permanent magnets. The initiative aims to develop an annual production capacity of 6,000 metric tonnes through integrated facilities that will convert rare earth oxides into metals, metals into alloys, and alloys into finished products.

Currently, India depends heavily on imports to meet its magnet requirements, exposing the automotive and EV sectors to supply risks and price volatility. The government believes domestic production will strengthen supply chain resilience and support India’s ambition to become a major manufacturing hub for automobiles and electric vehicles.

Permanent magnets are critical components used in electric vehicle motors, wind turbines, and industrial equipment, making their local production strategically important for the country’s industrial growth.