India Plans ₹7,000 Crore Rare‑Earth Magnet Push

India is moving to nearly triple its incentive programme for rare‑earth permanent‑magnet manufacturing to about ₹7,000–7,300 crore (roughly $788 million), pending cabinet approval, to build domestic capacity for magnets used in EVs, wind turbines and defence. The push is a response to China’s dominance of roughly 90%+ of refining and magnet production and recent export controls that exposed India’s heavy import dependence (over 90% of magnet imports from China). New Delhi plans to support around five firms with production‑linked incentives and capital subsidies, allow import of production equipment, and has held preliminary talks with rare‑earth‑oxide suppliers in South America, Africa, the UK and Australia to secure feedstock. Simultaneously, the government will nudge automakers to invest in R&D for rare‑earth‑magnet‑free technologies using ANRF funds as a longer‑term hedge. Officials warn significant challenges remain — limited domestic refining and technical expertise, environmental and capital costs, and long project timelines — and note state miner IREL produces only about 400–500 tonnes of neodymium oxide versus India’s roughly 2,000+ tonnes annual need, making incentives and foreign partnerships critical.