The Cabinet approved the Rs. 7,280 crore Rare Earth Permanent Manufacturing Scheme on November 26, Wednesday. This first-of-its kind initiative aims to establish a six thousand metric tonnes per annum of integrated Rare Earth Permanent Magnet manufacturing in the country.
Cabinet Minister Ashwini Vaishnav, highlighted the importance of Earth Permanent Magnets for electric vehicles, renewable energy, electronics, aerospace, and defence applications at a media briefing in New Delhi. The scheme is expected to support the creation of integrated manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished Rare Earth Permanent Magnet, the Union Minister added.
As the demand for electric vehicles grows, the demand for permanent magnets is expected to double by 2030. Currently India primarily relies on imports to satisfy its requirements for permanent magnets. This new scheme is expected to play a significant role in generating employment, boosting self-reliance, and accelerating the country’s aim to achieve Net Zero by 2070.
The total duration of the scheme will be seven years from the date of award, including a two-year gestation period for setting up an integrated Rare Earth Permanent Magnet manufacturing facility. The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process.
