Newsletter
The Union Cabinet has cleared an incentive scheme worth ₹7,280 crore in India for production of Rare Earth Permanent Magnets (REPM).
What is it about: the scheme is likely to help boost the rare-earth ecosystem in India. It is also aimed to cut down import dependence from countries like China which mines 60% of the global output and refines 91% of rare earths.
The deets: the plan targets an annual production capacity of up to 6,000 tonnes and is expected to run for seven years.
For context, 6,000 tonnes of rare earth permanent magnets can power 2-3 millions of EVs, 4,000-6,000 wind turbines, and 10,000+ MRI systems.
Why does it matter: rare earth magnets power a wide variety of modern hardware like electric and hybrid vehicles, turbine generators, and computer har disk drives.
India’s electric vehicles market is steadily growing at 22.4% and is poised to reach a valuation of $117.78 billion by 2032. Securing a steady supply of rare-earth minerals will help the country achieve this target swiftly.
It also supports India’s push for indigenisation in critical sectors like clean energy, electric mobility, manufacturing, and healthcare.
IREL
