Rs 1K cr scheme proposed for rare earth magnet production, says minister

Inter-ministerial consultations are underway for a Rs 1,345-crore scheme to subsidise production of rare earth magnets in India with two select manufacturers proposed to be given incentives, Union Heavy Industries Minister H D Kumaraswamy said on Friday.

The proposed scheme comes in the wake of China restricting exports of rare earth magnets that has hit global supplies, impacting EV makers, including in India.

It will provide end-to-end support for conversion of rare earth oxides into magnets.

The proposal may be sent to the Union Cabinet for approval once the inter-ministerial consultations are completed, sources said.

“(The) Rs 1,345 crore scheme has (proposed) two manufacturers,” Kumaraswamy said.

Secretary in the Heavy Industries Ministry Kamran Rizvi shared that a Rs 1,345 crore scheme has been circulated which envisages “end-to-end” support to two manufacturers for conversion of rare earth oxides into magnets, which is under inter-ministerial consultation.

China’s recent restriction on exports of key metals caused widespread disruption in the manufacturing of automobiles and semiconductor chips in a host of countries, including India. Rare earth magnets include neodymium-iron-boron (NdFeB). It is used for high-performance automotive applications.