How India Plans to Break Free From China’s Grip With Its Rs 7,280-Crore Rare Earths Strategy

Rare earth magnets are the invisible force powering modern technology. They sit at the heart of electric vehicles (EVs), enable the precision of advanced fighter jets like the F-35, and drive everyday gadgetsfrom smartphones and laptops to wind turbines. Recognizing their strategic importance for the next phase of global growth, India on Wednesday unveiled a comprehensive Rs 7,280-crore plan to ramp up domestic rare earth magnet production.

china currently controls almost the entire global supply chain, producing roughly 90% of the world’s refined rare earth magnets. Beijing has long used this dominance to maintain strategic influence. With China tightening export controls, supply risks for India have intensified, prompting the government to fast-track the development of a self-reliant ecosystem.

In a major step toward Atmanirbhar Bharat, the Union Cabinet has approved a large-scale initiative to build India’s first integrated manufacturing ecosystem for rare earth permanent magnets (REPM), which India currently imports almost entirely.

The move was finalized in a meeting chaired by Prime Minister Narendra Modi.

What Is India’s Rare Earth Permanent Magnet Scheme?

The REPM initiative aims to create a full domestic supply chain that processes NdPr (neodymium–praseodymium) oxide into high-performance sintered NdFeB (neodymium–iron–boron) magnets. These magnets are vital across industriesEVs, consumer electronics, renewable energy systems, medical imaging technologies, and defense platforms.

According to a PIB statement, the government will establish India’s first integrated REPM manufacturing facilities, targeting a production capacity of 6,000 MTPA. The programme will be rolled out over seven to ten years and will rely on capital subsidies, viability gap funding, and production-linked incentives.

The plan covers the full value chain: converting oxides to metals, metals to alloys, and alloys into final REPM products. These magnets are the strongest commercially available, and in most high-performance applications, they have no viable substitutes.

To put this into perspective: a typical mid-size electric car requires 1–2 kg of NdFeB magnets, while a 3-MW offshore wind turbine needs up to 600 kg.

With India pushing for 30% EV adoption by 2030 and rapidly expanding renewable power capacity, the demand for these magnets is set to explode.

At present, China manufactures over 90% of global refined magnets and accounts for more than 70% of rare earth mining. India, in comparison, imports nearly all its requirements.

South India Houses India’s Most Viable Rare Earth Resources

Despite possessing the world’s fifth-largest rare earth reservesabout 6.9 million tonnes of rare earth oxide equivalentIndia contributes less than 1% to global production.

Most recoverable resources are found in the southern states. Kerala holds the richest monazite belts, especially along the Kollam–Alappuzha–Kanyakumari stretch, where major Indian Rare Earths Limited (IREL) facilities operate in Chavara and Manavalakurichi.

Monazite is a reddish-brown mineral found largely in beach and river sands and is rich in thorium and rare earth elements such as neodymium, lanthanum, and cerium.

Odisha’s Ganjam, Balasore, and Mayurbhanj districtsespecially the Chatrapur mineral sandshold over three million tonnes of heavy mineral deposits.

Other significant sources include Andhra Pradesh’s coastal belts in Srikakulam, Visakhapatnam, and the Krishna-Godavari region, as well as Tamil Nadu’s Tuticorin, Tirunelveli, and Kanyakumari districts.

Smaller deposits have also been identified in Jharkhand, Bihar, and Rajasthan.

Why Extracting Rare Earth Elements Is So Difficult

Extracting rare earth elements (REEs) is a technically complex and tightly regulated process. Since monazite contains radioactive elements like thorium and uranium, mining and processing fall under strict supervision by the Atomic Energy Regulatory Board.

The separation of 17 rare earth elements requires hundreds of solvent extraction steps involving strong acids and produces large volumes of toxic and radioactive waste. One tonne of rare earth oxide can generate 70–100 tonnes of hazardous tailings.

The programme will be jointly monitored by the Department of Atomic Energy, the Ministry of Mines, and NITI Aayog to ensure adherence to environmental and safety standards.

Amitabh Kant, former CEO of NITI Aayog, highlighted the strategic relevance of the project, stating, “Global supply networks controlled our pace for far too long. India will now set its own terms and build long-term technological strength at home.”

With the Rs 7,280-crore REPM strategy, India aims not just to reduce import Reliance, but to position itself as a robust, sustainable alternative in the global rare earths value chainbreaking free from China’s long-standing monopoly.