New Delhi: India’s demand for Rare Earth Magnets is projected to reach 8,220 metric tonnes per annum (MTPA) by 2030, the government informed Parliament on Tuesday. The estimate follows an assessment by IREL (India) Limited, the Defence Metallurgical Research Laboratory and the Bhabha Atomic Research Centre.
The assessment showed that electric vehicles will account for the largest demand at 3,250 MTPA. Moreover, wind turbines will require 1,800 MTPA, while BLDC fans will need 980 MTPA. Smartphones, computers, industrial motors and other sectors will also contribute to rising demand.
The government said India has developed significant upstream capabilities in mining, separation and oxide refining. However, it lacks industrial-scale facilities for converting rare earth oxides into metals, alloys and permanent magnets. Therefore, the country continues to import all sintered neodymium-iron-boron magnets for domestic applications.
Officials also said the Geological Survey of India has identified cumulative rare earth element ore resources of 767 million tonnes across the country since the MMDR Amendment Act, 2015. These resources have been assessed at different cut-off values and average grades.
Rare Earth Magnets scheme targets domestic production
To bridge the manufacturing gap, the Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet with a financial outlay of ₹7,280 crore on November 26, 2025. Furthermore, the government notified the scheme on December 15, 2025.
The initiative aims to establish domestic capacity for producing sintered rare earth permanent magnets. In addition, it seeks to reduce import dependence and strengthen India’s critical minerals ecosystem.
Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma shared the information in a written reply in the Lok Sabha. Finally, the government said the scheme will support the growth of sectors such as electric vehicles, renewable energy, consumer electronics and industrial manufacturing.
