Country’s largest industrial groups, including Adani Enterprises, Reliance Industries, JSW Group, Kalyani Group and Maruti Suzuki India, have shown initial interest in the government’s proposed ₹7,280-crore incentive scheme aimed at building domestic capacity for rare earth permanent magnets (REPM).
According to people familiar with the discussions, representatives from these companies participated in a stakeholders’ meeting held earlier this week to assess the contours of the scheme, which is expected to support end-to-end manufacturing — from rare earth separation and processing to the production of finished magnets.
While interest is high, companies are awaiting the final request for proposal (RFP) before committing capital. “Once the RFP is issued, firms will evaluate the incentive structure and align participation with their specific business requirements,” said a stakeholder who attended the meeting.
Boosting Domestic Capacity
The proposed Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets targets the creation of around 6,000 tonnes per year of domestic capacity by 2030.
Sintered magnets, especially those using heavy rare earth elements, are essential for high-performance applications such as EV traction motors, wind turbines, precision-guided defence systems and advanced electronics.
The scheme is a key part of country’s push to reduce dependence on China for critical materials used in electric vehicles (EVs), renewable energy, electronics and defence.
The entry of diversified conglomerates underscores the strategic importance of these materials as India’s energy transition and manufacturing ambitions gather pace.
Maruti Suzuki India, along with auto component maker Sona BLW Precision Forgings, requires rare earth magnets for electric drivetrains and traction motors.
Reliance Industries Industries is expected to need magnets across its renewable energy platforms, battery manufacturing initiatives and green hydrogen ecosystem.
Similarly, the JSW Group and the Kalyani Group are exploring applications spanning EV components, wind energy equipment, aerospace and defence manufacturing.
Diverse Infrastructure Portfolio
Adani Enterprises is likely to deploy rare earth magnets across its rapidly expanding portfolio, including renewable power generation, defence electronics and data centre infrastructure.
Clean-tech and recycling companies are also positioning themselves as part of the emerging value chain.
Firms such as Attero Recycling, Lohum Cleantech and Vedanta’s Runaya are focused on recovering rare earth materials from end-of-life electronics and batteries, a segment that could complement primary processing and help address supply constraints over time.
At the same time, specialist magnet manufacturers — including Permanent Magnets, Ashvini Magnets and Midwest Advanced Materials — are already present in India’s domestic magnet ecosystem. They also participated in the meeting.
However, all of these specialist magnet manufacturers currently lack the capability to produce heavy rare earth-based magnets, which are critical for high-temperature and high-efficiency applications.
The proposed scheme is expected to bridge this gap by incentivising technology acquisition and scale-up.
Industry analysts said the breadth of interest reflects a growing recognition that access to rare earth magnets will be a long-term strategic necessity.
Government officials indicated that work on the RFP is at an advanced stage. “We are finalising the RFP and intend to roll it out as soon as possible,” a senior official said, adding that the scheme is designed to attract both large anchor investors and specialised players to build an integrated and resilient domestic supply chain.