NEW DELHI – July 12, 2025 – India is devising strategies to overcome the current dependence on China for rare earth element magnets, specifically Neodymium, by announcing plans to develop indigenous production capabilities. The Indian government is preparing a scheme to offer subsidies worth ₹1,345 crore (approximately $160 million USD) to domestic manufacturers of Neodymium magnets.
Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, stated, “A scheme for providing subsidies of ₹1,345 crore to manufacturers of rare earth element magnets has been approved. This is currently under ministerial consultation. Currently, it has been proposed that there will be two manufacturers, but this might change by the time the scheme is finalized.”
Kamran Rizvi, Secretary of the Ministry of Heavy Industries, elaborated that a ₹1,345 crore scheme has been envisioned to provide “full support” to two manufacturers for converting rare earth oxides into magnets, and this plan is undergoing ministerial consultations.
Rizvi clarified that only manufacturers undertaking end-to-end processing would be eligible for the subsidy. The proposed scheme is expected to include both private companies and public sector undertakings, aiming to foster a robust domestic supply chain for these critical components.
