Cabinet Approves Rs 7,280-Crore Scheme To Boost Rare Earth Magnet Manufacturing In India

It is that crucial component of an electric vehicle (EV) that you do not see. It is also at the heart of the F-35 that scares enemies from the sky. From wind turbines to smartphones to laptops, we depend on rare earth magnets for everyday products without even realising. The next phase of the world's growth depends on these rare earth magnets, and on Wednesday, India unveiled a Rs 7,280-crore plan to boost their domestic production.

China has a near-monopoly on the production of rare earth magnets. Beijing controls around 90% of the global market, a dominance it uses to gain geopolitical advantage. The government's Rs 7,280-crore plan comes at a time when China's tighter export norms on rare earths are set to heighten supply challenges for Indian industries.

The scheme was approved by the Union Cabinet for establishing a complete domestic manufacturing ecosystem for rare earth permanent magnets (REPM), a material on which India currently has near-total import dependence.