India is preparing to triple its production-linked incentive (PLI) scheme for manufacturing rare-earth magnets, raising the outlay to nearly ₹7,000 crore ($788 million) in a major bid to cut dependence on China for critical clean-energy materials.
The enhanced plan will support around five manufacturers producing high-performance magnets used in electric vehicles, wind turbines, defence systems, and medical devices. Officials said the move aims to build a self-reliant ecosystem for rare-earth processing and component manufacturing amid global supply-chain disruptions.
China currently dominates nearly 90% of global rare-earth refining and processing. India’s revised scheme, awaiting Cabinet approval, will offer both capital and performance-linked incentives to attract domestic and foreign investors.
Meanwhile, foreign mining firms, including Lynas Rare Earths (Australia), Rainbow Rare Earths (UK), and Iluka Resources, have assured the government of steady rare-earth oxide supplies, de-risking the initial phase of magnet production until local mining capacity scales up.
Officials from the Ministry of Heavy Industries said the plan will also promote innovation in alternative magnet technologies to further reduce future dependence on imported materials.
Analysts consider it a strategic step to boost India’s mineral resilience, advance “Make in India,” and strengthen its role in the global clean-energy shift.
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