India has a substantial base of rare-earth minerals located across several coastal and inland regions. These minerals are found in coastal beach sands, red sands and inland alluvium in Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra.
To extract these rare earth minerals, the Government has approved over 7 thousand crore rupees for the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ (REPM).
The scheme aims to build the country’s first integrated domestic manufacturing ecosystem for high-value magnets. It also seeks to create 6,000 metric tonnes per annum capacity that spans the entire value chain from rare-earth oxides to finished magnets. These oxides serve as the primary raw material for downstream rare-earth industries, including permanent magnet manufacturing.
The Ministry of Mines has entered into bilateral agreements with mineral-rich countries, including Australia, Argentina and Zambia. The initiative supports India’s energy transition, strengthens domestic industrial capability, generates employment and advances the vision of Atmanirbhar Bharat and Viksit Bharat by 2047.
This move is designed to reduce India’s heavy dependence on imports, particularly from China, and strengthen supply chains for strategic and high-growth sectors such as electric mobility, renewable energy, electronics, aerospace, and defence.
