The Government of India acknowledges the automotive sector's dependence on imported rare-earth permanent magnets, particularly for electric and hybrid vehicles, which leads to supply-chain vulnerabilities. To address this, the government is exploring alternative supply sources. The Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components (PLI-Auto Scheme) is strengthening domestic capability by including "rare earth magnets for xEV motors" as an Advanced Automotive Technology component and promoting domestic development of rare earth free motor technologies. The Union Cabinet approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' on 26.11.2025 with a financial outlay of Rs.7280 crore to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India. This information was provided by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma. Release ID: 2202967, Visitor Panel: 1023.
Key Entities Referenced
Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components (PLI-Auto Scheme): Scheme aimed at strengthening domestic capability, particularly concerning rare earth magnets for xEV motors
Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets: Approved by the Union Cabinet to promote the manufacturing of Sintered Rare Earth Permanent Magnets with a financial outlay of Rs.7280 croreto establish 6,000 Metric Tons per Annum (MTPA)
Ministry of Heavy Industries: The ministry providing the information related to rare earth magnets
Ministry of Heavy Industries
OVERCOMING SHORTAGE OF RARE EARTH
MAGNETS FOR EV PRODUCTION
प्रव तथ: 12 DEC 2025 4:06PM by PIB Delhi
Yes. Government of Indiais aware of import dependence of the automotive sector, particularly electric &
hybrid vehicles, on rare-earth permanent magnets. This dependence has lead to supply-chain vulnerability
for OEMs utilizing rare earthmagnets.
Government is exploring alternative supply of rareearth magnets. Production Linked Incentive (PLI)
Scheme for Automobiles and Auto Components (PLI-Auto Scheme) is strengthening domestic capability
throughlisting “rare earth magnets for xEV motors” as an Advanced Automotive Technology component
and promote domestic development of alternative (rare earth free) motor technologies& its components.
Further, Union Cabinet on 26.11.2025 approved the 'Scheme to Promote Manufacturing of Sintered Rare
Earth Permanent Magnets' with a financial outlay of Rs.7280 croreto establish 6,000 Metric Tons per
Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa
Varma in a written reply in the Rajya Sabha today.
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TPJ/NJ
(रलीज़ आईडी: 2202967) आगंतुक पटल : 1023
इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , ही