Overview
- Beneficiaries will receive Rs 6,450 crore in sales-linked incentives over five years and a Rs 750 crore capital subsidy to set up oxide-to-metal-to-alloy-to-magnet lines.
- India imported over 53,000 tonnes of rare-earth magnets in 2024–25, with more than 90% sourced from China, which controls most processing and manufacturing.
- The planned capacity is small next to China’s roughly 240,000-tonne annual magnet output, highlighting the scale gap India must close.
- Domestic heavy rare-earth supply is absent and Indian Rare Earths Limited provides limited light rare-earth oxides, implying continued imports and technology partnerships.
- Environmental and technical hurdles remain, including managing thorium-bearing waste, and analysts warn reliance could shift upstream without parallel e-waste recycling and raw-material sourcing.