Centre Seeks To Call Bids For Rs 7,280-Crore Rare Earth Facilities By January End
The move is aimed at building self-reliance in permanent rare earth magnet manufacturing, critical for meeting rising demand from electric vehicles, renewable energy, electronics, aerospace and more.
India is expected to invite bids by January for establishing rare earth permanent magnet (REPM) manufacturing facilities under a Rs 7,280-crore incentive scheme, officials said.
The government will notify the scheme this month and begin pre-bid consultations shortly, they added. “We are hoping to call bids by January-end,” a senior official told the Economic Times. The draft guidelines will be released for stakeholder comments before the final notification, the official said.
The move is aimed at building self-reliance in permanent rare earth magnet manufacturing, which is critical for meeting the rapidly rising demand from electric vehicles, renewable energy, electronics, aerospace and defence.
Approved by the Union cabinet in November, the scheme has been formulated after extensive consultations with stakeholders across the permanent magnet supply chain. It targets the creation of 6,000 metric tonnes per annum of integrated REPM manufacturing capacity in India.
According to the official, indigenous technology for REPM production has already been developed under a dedicated programme of the Department of Science and Technology.
To secure raw material supplies, the Centre is holding discussions with rare earth oxide suppliers from South America, Africa, the UK and Australia, who have offered to supply the required chemical compounds. One tonne of rare earth oxide can produce roughly three tonnes of permanent magnets, which are vital for EV motors and new-age electronic applications.
The push for domestic capacity comes after Beijing — India’s largest supplier — restricted exports, causing a severe shortage of rare earth magnets. Although China has since permitted conditional exports, the government is determined to strengthen local manufacturing to reduce dependence on a single source and ensure supply stability.
The domestic industry has shown interest in participating in the scheme but has raised concerns about sourcing capital equipment from China. The government has attempted to ease these worries, noting that alternative suppliers are available. “That will not be an issue since manufacturing equipment can be sourced from Japanese, South Korean, or European suppliers,” the official said.
