The Government of India (GoI) on Wednesday approved a $815 million plan in a bid to establish 6,000 Metric Tons per Annum (MTPA) manufacturing units of integrated Rare Earth Permanent Magnet (REPM) in the country.
The plan aims to enhance self-reliance and position India as a "key player in the global REPM market".
"REPMs are one of the strongest types of permanent magnets and are vital for electric vehicles, renewable energy, electronics, aerospace, and defence applications. The Scheme will support the creation of integrated REPM manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs," the GoI statement said.
With demand for electric vehicles, consumer electronics, renewable energy, aviation tools and industrial applications growing at a rapid pace, the consumption of REPMs is slated to double in the next five years from current levels.
The world's fastest-growing large economy meets its REPM requirements mostly through imports.