Govt To Transfer Technology To Produce Rare Earth Magnets In Private Sector In 3

New Delhi, July 14 (KNN) In an effort to reduce reliance on China and boost domestic manufacturing, the government plans to transfer technology to private factories within the next three to four months to scale up the production of rare earth magnets, Union Coal and Mines Minister G. Kishan Reddy said on Saturday.

Speaking to ANI, Reddy stated "We used to be 100 percent dependent on China for permanent magnets of the rare earths. But recently, China has refused to supply. With this view, the Indian government is making efforts for permanent magnet manufacturing."

However, following China’s recent decision to restrict exports of certain rare earth-related products, the Indian government has stepped up efforts to build indigenous capacity.

"Our mining ministry's institute in Hyderabad has made efforts and prepared a permanent magnet processing unit with equipment. After three to four months, we will try to manufacture permanent magnets by giving the technology to different private factories. For this, the Indian government has also started some PLI schemes to encourage it. We are paying attention to this subject," he added.

To support the initiative, the Centre has introduced Production-Linked Incentive (PLI) schemes aimed at incentivising magnet production, and has earmarked Rs 1,345 crore to promote domestic manufacturing.

The broader goal is to mitigate vulnerabilities stemming from China's overwhelming dominance in rare earth processing, where it currently accounts for over 90 percent of global magnet production capacity.

Finance Minister Nirmala Sitharaman announced the launch of the Critical Mineral Mission in the Union Budget 2024–25.

The initiative received further momentum when the Union Cabinet approved the National Critical Mineral Mission (NCMM) in January 2025, with an outlay of Rs 16,300 crore and anticipated investment of Rs 18,000 crore by Public Sector Undertakings.

Reddy also confirmed that Prime Minister Narendra Modi raised the issue of rare earth supply and magnet manufacturing during his recent five-nation tour.

“Discussions with several countries took place to secure access to raw materials and enhance our domestic processing capabilities,” he said.

While India has some reserves of rare earth elements, domestic availability of key inputs for magnet production remains limited.

As such, India is looking to import, select critical raw materials, process them locally, and establish a sustainable domestic value chain to meet growing global and domestic demand.

(KNN Bureau)