Bids for India’s first rare earth permanent magnet plants may open in January 2026, aiming to strengthen local production for EVs, electronics, and renewable energy sectors.
The central government reportedly plans to invite bids by January 2026 to establish rare-earth permanent magnet (REPM) manufacturing facilities under a ₹72.8 billion incentive scheme. The government is expected to release the scheme notification in December itself, followed by pre-bid consultations with stakeholders.
According to a report by The Economic Times, the centre is eyeing January-end. Draft guidelines will be issued for public and industry feedback before the final notification.
The newly launched initiative aims to make India self-reliant in permanent magnet production, a sector critical to electric vehicles, renewable energy, electronics, aerospace, and defence.
The scheme targets the creation of 6000 metric tonnes per annum of integrated REPM manufacturing capacity.
The Union cabinet approved the plan in November after extensive consultations across the permanent magnet supply chain. Indigenous technology for REPM production has already been developed through a programme led by the Department of Science and Technology.
To secure raw material supplies, the government is engaging with rare earth oxide producers in South America, Africa, the UK, and Australia. One tonne of rare earth oxide can yield roughly three tonnes of permanent magnets, essential for EV motors and advanced electronics.
The push for domestic capacity follows export restrictions by China, India’s largest rare earth supplier, which caused supply shortages. Although Beijing has now allowed conditional exports, the Indian government is focused on strengthening local production to reduce dependence on a single source.
Domestic industry interest has been high, though concerns were raised about sourcing manufacturing equipment from China. The government has sought to address this, noting that equipment can also be procured from Japan, South Korea, and European suppliers.
