India to Start Local Permanent Magnet Production In 2 Years, Cutting China Import Reliance

In a bid to reduce dependence on imports and push electric mobility more broadly, India is working towards starting local production of permanent magnets, Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries said in New Delhi on Tuesday at the Global Electrification Mobility Summit.

“We hope that in the next two years, there would be indigenous production of permanent magnets,” Qureshi told reporters.

This comes months after the Centre approved a scheme with a financial outlay of ₹7,280 crore to manufacture Rare Earth Permanent Magnets (REPM) locally in India. REPMs serve as essential elements with uses spanning electric vehicles, renewable energy, electronics, aerospace and defence industries. 

According to the government, the programme will facilitate the establishment of comprehensive REPM production facilities, including the transformation of rare earth oxides into metals, metals into alloys, and alloys into completed REPMs.

Qureshi also noted that supply chain resilience has emerged as a principal priority as the country establishes itself as a key production hub for automobiles and EVs. 

Magnets made of rare earths are very small but powerful, and are used in the production of electric vehicles (EVs), smartphones, medical scanners, defence equipment, wind turbines, and many other products. 

Earlier in December 2025, after months of delays due to trade restrictions, China cleared export licences for rare earth magnets to India, easing supply chain disruptions for automotive manufacturers and EV makers.

The automotive industry faced manufacturing roadblocks and postponed EV launches following China's export controls on rare earth magnets.

The restrictions, introduced in April 2025, required export licences and comprehensive end-use documentation, setting up a clearance mechanism that required a minimum of 45 days and had yielded no authorised shipments to India even by late May 2025.

India procured over 80 per cent of its roughly 540 tonnes of magnet imports from China during the previous fiscal year.