Market Executive Summary

India Rare Earth Magnet Market Overview

The India rare earth magnet market, valued at USD 635 million in 2024, is now positioned for significantly stronger growth following the Union Cabinet’s approval of a INR 7,280-crore (USD ~816 million) Rare Earth Permanent Magnet Manufacturing Scheme in November 2025. This landmark initiative marks India’s first integrated effort to build a domestic, end-to-end REPM ecosystem, reducing reliance on Chinese imports while enabling large-scale production of NdFeB and SmCo magnets.

Driven by the government’s strategic focus on clean energy, electric mobility, defence, electronics, and advanced manufacturing, demand for high-performance rare earth magnets is expected to accelerate meaningfully over the next decade. The scheme aims to create a 6,000-ton annual REPM production capacity, directly supporting sectors such as EV motors, wind turbines, aerospace, and industrial automation.

With expanding renewable energy installations, rapid EV adoption, and strong government-backed incentives for critical minerals processing, the market is projected to reach USD ~1.05–1.08 billion by 2032, reflecting a revised CAGR of 5.5–6% from 2025–2032 higher than earlier estimates due to policy-driven capacity creation and supply-chain localization.

Market size (2024): USD 635 million

Revised forecast for 2032: USD 1.05–1.08 billion

Growth rate (2025–2032): 5.5–6?GR (policy uplift included)

Government push: ?7,280-crore Rare Earth Magnet Manufacturing Scheme approved

Target: 6,000 tons/year domestic magnet capacity

Focus areas: EVs, wind power, defence, electronics, industrial automation

India’s Rare Earth Magnet Industry

India has announced a major national push to strengthen domestic rare earth permanent magnet manufacturing, marking one of the most significant policy moves in this sector. The Union Cabinet has approved a INR 7,280-crore Rare Earth Permanent Magnet (REPM) scheme aimed at reducing India’s dependence on China and accelerating self-reliance in critical minerals and high-performance magnet production.

This scheme focuses on boosting the production of sintered NdFeB magnets and other rare earth permanent magnets used in electric vehicles, wind turbines, defense systems, electronics, and advanced manufacturing. The government plans to develop a fully integrated supply chain covering mining, processing, alloy making, and magnet production within India.

According to government statements and media reports, the seven-year plan will support end-to-end manufacturing and encourage large Indian companies, global players, and technology partners to invest in local magnet facilities. The approved programme totals 72.8 billion rupees, highlighting India’s strategic shift toward securing rare earth materials and minimizing import dependency.

Industry experts believe that this initiative will significantly strengthen India’s position in clean energy technologies. The new REPM mission will help India achieve nearly 6,000 tons per year of magnet production capacity in the coming years. Several reports indicate that this move also supports the Atmanirbhar Bharat vision by enabling domestic production of critical components required for EV motors, wind power generators, drones, satellites, and defense equipment.

In addition to the financial incentives, IREL (India) Limited is moving ahead with its rare earth permanent magnet plant in Visakhapatnam. This facility uses indigenous technology and is expected to play a key role in India’s growing magnet ecosystem. Market analysts also noted a sharp rise in related mining and material stocks following the announcement, reflecting strong investor confidence in the sector.

With the Cabinet’s approval of the REPM scheme, India has taken a decisive step toward creating a secure, self-sufficient, and globally competitive rare earth magnet industry. This development is expected to drive rapid market expansion, fuel EV and renewable energy growth, and reduce the dominance of foreign supply chains in critical technologies.

Market Trends

Clean energy technologies are one of the biggest drivers of the India rare earth magnet market. According to the Central Electricity Authority, India’s total renewable energy installed capacity grew by 24.2 GW in just one year, reaching 203.18 GW in October 2024. As the country intensifies its shift toward green power, the requirement for high-strength and energy-efficient magnets is increasing in electric vehicles, wind turbines, solar power systems and industrial motors. NdFeB magnets, known for exceptional magnetic performance, are essential for these applications.

India’s ongoing efforts toward carbon reduction and sustainability are pushing industries to adopt efficient motors, generators and power systems that rely heavily on rare earth magnets. As renewable energy and EV production continue to expand, the market for rare earth magnets used in power generation, energy storage and environmentally friendly technologies will continue to grow.

Government Policies and Industry Support

The Government of India recognizes rare earth elements as essential strategic materials for technological and economic development. Multiple policies are now focused on strengthening domestic production, reducing import dependence and attracting investments in the magnet manufacturing ecosystem. These policies include tax incentives, funding for research and development, improved mining and refining infrastructure and partnerships for advanced technology.

A major example is the Technology Development Board (TDB) funding in 2024 for Midwest Advanced Materials Pvt Ltd in Hyderabad. The project supports domestic production of Neodymium materials and rare earth permanent magnets using sustainable molten salt electrolysis technology. The initiative is expected to reach an annual capacity of 5,000 tons by 2030, boosting India’s self-reliance in EV and renewable energy components.

Market Segmentation

Magnet Types:

Neodymium-Iron-Boron (NdFeB) magnets

Samarium-Cobalt (SmCo) magnets

Applications for NdFeB magnets:

Automobile

Electronics

Power generators

Medical industry

Wind power

Other industrial uses

Applications for SmCo magnets:

Defense

Aerospace

Electronics

Medical devices

Other high-temperature uses

Regions covered in India:

North India

South India

East India

West India

Competitive Landscape

The India rare earth magnet market includes domestic manufacturers, international players and government-supported enterprises working to build an integrated rare earth supply chain. The competitive environment includes analysis of market share, company positioning, strategies, product offerings and technological advancements. Companies are investing in R&D, capacity expansion and partnerships to strengthen India’s magnet manufacturing capabilities.

Recent Industry Developments

In October 2024, Trafalgar announced plans to build India’s first fully integrated rare earth metals, alloy and magnet manufacturing plant in Gujarat. The facility aims to meet 20 percent of India’s demand for sintered NdFeB magnets by 2027. Supported by IREL, the plant is expected to be completed by 2026.

In May 2023, the Prime Minister of India inaugurated the Rare Earth Permanent Magnet Plant in Visakhapatnam, developed by BARC and constructed by Engineering Projects (India) Ltd. The facility manufactures samarium-cobalt and neodymium-iron-boron magnets, placing India among the limited number of countries capable of producing rare earth permanent magnets domestically.

Report Coverage

Base year of analysis: 2024

Historical period: 2019 to 2024

Forecast period: 2025 to 2032

Units used: Million USD

Market coverage includes historical performance, future outlook, industry drivers, challenges, opportunities, magnet type analysis, application-wise outlook and regional assessment. Customization options and post-sale analyst support are available as part of the research service.

Key Benefits for Stakeholders

The report provides a complete quantitative and qualitative assessment of the India rare earth magnet market. It covers market trends, demand drivers, challenges and future opportunities from 2019 to 2032. It also includes Porter’s Five Forces analysis to help users understand competition levels, supplier dynamics, buyer influence and market attractiveness. The competitive overview offers insights into key players and their strategic positioning within the Indian rare earth magnet industry.