Govt’s Rs 1000 Crore Rare Earth Magnet Scheme – What You Need to Know

India’s Push for Rare Earth Magnet Production
In response to China’s export restrictions on rare earth minerals, the Indian government is set to invest Rs 1000 crore to boost domestic production of rare earth magnets. The Ministry of Heavy Industries and the Department of Atomic Energy are finalizing a scheme to produce 1,500 tonnes of these magnets within the country.

Key Highlights of the Scheme
Budget: Rs 1000 crore allocated for rare earth magnet manufacturing.
Production Target: 1,500 tonnes annually to meet industrial demand.
Industry Participation: 5-6 companies have already shown interest in manufacturing.
Timeline: The scheme is expected to be finalized in 10-15 days.

Why is This Scheme Crucial?
Rare earth magnets are essential for:
Electric vehicles (EVs) – Used in motors and batteries.
Wind turbines – Critical for renewable energy projects.
Consumer electronics – Found in smartphones, hard drives, and speakers.
China currently controls over 80% of global rare earth supplies. By reducing dependence on imports, India can secure its supply chain and strengthen key industries.

India Rare Earth Limited (IREL) – A Major Player
IREL is expected to supply 500 tonnes of raw materials to manufacturers.
The company will play a pivotal role in ensuring a steady supply chain for industries.

Expansion to Other Rare Earth Minerals
The government is also working on a separate Rs 3500-5000 crore scheme to boost production of other rare earth minerals. An internal assessment is underway to fast-track domestic production.


Sample Questions & Answers (For Competitive Exams)
Q1. What is the budget allocated for India’s rare earth magnet production scheme?
A1. The government has allocated Rs 1000 crore to incentivize domestic rare earth magnet production.
Q2. Which industries heavily depend on rare earth magnets?
A2. The automobile (especially EVs), renewable energy (wind turbines), and electronics industries rely on rare earth magnets.
Q3. How much rare earth magnet production is India targeting under this scheme?
A3. The goal is to produce 1,500 tonnes of rare earth magnets annually.
Q4. Which government bodies are involved in this initiative?
A4. The Ministry of Heavy Industries and the Department of Atomic Energy are leading the scheme.
Q5. Why is India focusing on domestic rare earth production?
A5. Due to China’s export restrictions, India aims to reduce import dependency and secure supply chains for critical industries.