India Aims for Self-Reliance in Vital Component for EVs and Renewable Energy

NEW DELHI: The Union Cabinet has approved a major scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with a financial outlay of ₹7,280 crore. This first-of-its-kind initiative aims to establish an integrated REPM manufacturing capacity of 6,000 metric tonnes per annum in India.

Information and Broadcasting Minister Ashwini Vaishnaw, briefing the media, highlighted that REPMs are among the strongest permanent magnets and are vital for electric vehicles (EVs), renewable energy, electronics, aerospace, and defense applications. The scheme will support the creation of integrated facilities covering the entire value chain—from converting rare earth oxides to finished magnets.

India’s REPM demand, currently met primarily through imports, is projected to double by 2030 due to the rapid growth of EVs and renewable energy. This initiative will generate employment, strengthen self-reliance, and advance India’s commitment to achieving Net Zero by 2070. The scheme’s total duration is seven years and envisions allocating capacity to five beneficiaries through a global competitive bidding process.

In a separate decision, the Cabinet also approved the Pune Metro Rail Project Phase-2 at an estimated cost of ₹9,857 crore. This phase includes Line 4 (Kharadi-Hadapsar-Swargate-Khadakwasla) and Line 4A (Nal Stop-Warje-Manik Baug), with a completion target of five years.