With the world’s third-largest rare earth reserves, India seeks to scale production as demand for magnets in EVs, defence and renewable energy is projected to double by 2030.
India aims to start producing rare earth permanent magnets by the end of the year in partnership with the private sector, the federal mining minister said on Thursday, as the country seeks to reduce imports of critical industrial inputs.
New Delhi approved a ₹7,300 crore ($802 million) rare earth permanent magnets manufacturing programme in November. The magnets are used in industries ranging from electric vehicles and aerospace to defence and renewable energy.
The mining ministry and a state-run body have developed the technology to produce permanent magnets, with plans to set up four critical mineral processing plants across four states, minister G. Kishan Reddy said at an event organised by the Federation of Indian Chambers of Commerce & Industry.
FOUR PLANT PLAN
India has the world’s third-largest rare earth reserves at 6.9 million tonnes, according to the U.S. Geological Survey, but mines only a fraction due to limited private investment.
The country’s consumption of rare earth permanent magnets is expected to double by 2030, yet demand is currently met largely through imports.
IMPORT DEPENDENCE
China, which controls about 90% of processing of such magnets, restricted shipments last year, prompting automobile companies to scramble for supplies.
Published on February 19, 2026
