ASSESSMENT OF RARE EARTH PERMANENT MANAGEMENT SCHEME

Key Highlights:

• An assessment by IREL (India) Limited, Defence Metallurgical Research Laboratory (DMRL), and Bhabha Atomic Research Centre (BARC) projected India's Rare Earth Permanent Magnet (REPM) demand to be 8220 MTPA by 2030.
• Major demand sectors for REPM include Electric Vehicles (3250 MTPA) and Wind Turbines (1800 MTPA).
• Geological Survey of India (GSI) has augmented 767 million tonnes of Rare Earth Elements (REE) ore resources in India since the MMDR Amendment Act, 2015.
• India possesses upstream capabilities in REE mining and refining but lacks midstream manufacturing for REPM, leading to reliance on imports for sintered NdFeB REPM.
• To bridge this gap, the Union Cabinet approved a Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) with a ₹7,280 Crore outlay on November 26, 2025.

Detailed Insights:

• The assessment underscores the growing strategic importance of REPM for India's advanced manufacturing and green energy transitions.
• India's current import dependency for sintered NdFeB REPM highlights a critical vulnerability in its industrial supply chain.
• The approved scheme aims to establish domestic capabilities for oxide-to-metal, metal-to-alloy, and alloy-to-magnet conversion.
• This initiative is vital for enhancing self-reliance and securing critical materials for sectors like defense, electronics, and renewable energy.
• The information was presented in the Lok Sabha by the Minister of State for Heavy Industries.

Scientific/Technical Concepts Involved:

• Rare Earth Permanent Magnet (REPM): Magnets made from rare earth elements, offering high magnetic strength in compact sizes for various technologies.
• Rare Earth Elements (REE): A group of 17 metallic elements vital for high-tech applications due to their unique magnetic, electronic, and optical properties.
• NdFeB REPM: A powerful type of rare earth permanent magnet composed of Neodymium, Iron, and Boron, crucial for high-performance motors and electronics.
• MMDR Amendment Act, 2015: Legislation that reformed India's mining sector, facilitating exploration and auctioning of mineral concessions.