India to Begin Production of Rare-Earth Permanent Magnets in 2026

India is set to commence the production of rare-earth permanent magnets by the end of this year, according to G. Kishan Reddy, the Union Minister for Mines. This initiative aims to enhance domestic manufacturing capabilities and reduce reliance on imports.

Rare-earth permanent magnets are crucial components used in various applications, including electric vehicles, renewable energy systems, electronics, aerospace, and defence. In November of the previous year, the Union Cabinet approved a manufacturing scheme for these magnets, which will produce up to 6,000 metric tons per annum, with a financial outlay of ₹7,280 crore (approximately $802 million).

At a recent summit hosted by the Federation of Indian Chambers of Commerce and Industry (FICCI), Reddy emphasized the government's commitment to decreasing dependency on foreign suppliers for critical minerals. He shared that plans are underway to establish specialised parks for critical mineral processing in states such as Odisha, Andhra Pradesh, Maharashtra, and Gujarat.

Reddy remarked that the Gujarat government has already begun preparations for this initiative, while Andhra Pradesh has expressed its support. He highlighted the current scarcity of manufacturing plants in India, which traditionally sees raw materials extracted only to be sent abroad for processing.

"At this point, there are very few manufacturing plants in India," he noted. Reddy also addressed the significant potential for reclaiming critical minerals from domestic waste, citing old mobile phones as an underutilised resource.

He stated, "We should look to avert this [dynamic], process it here – this is a challenge for us". This approach would not require any new mining operations or environmental clearances, thus presenting a sustainable alternative for resource recovery.

In addition to enhancing domestic production, Reddy mentioned that the government is considering importing scrap materials to support recycling efforts. This strategy is expected to foster self-reliance in the sector while addressing environmental concerns associated with mining. The minister's announcements signal a broader commitment by India to innovate within the critical minerals sector and establish a more sustainable energy future.