India’s Push for Rare Earth Magnet Production to Counter China’s Supply Curbs: G Kishan Reddy
The government’s production push aligns with the broader Make in India strategy and its commitment to securing supply chains for critical minerals.
- Republic Business
- 2 min read
In a major move to reduce reliance on Chinese imports, India will soon begin domestic production of rare earth permanent magnets in Hyderabad, Union Coal and Mines Minister G. Kishan Reddy announced on Saturday.
Speaking to ANI, the minister said the central government is working aggressively to achieve self-reliance in critical technologies. “The Mining Ministry’s NFTSM institute is collaborating with industries to manufacture the necessary machinery. Within the next 3–4 months, they will showcase their progress in producing permanent magnets,” he added.
Highlighting the urgent need for the initiative, Reddy explained that India had been 100% dependent on China for rare earth permanent magnets—a critical component in electronics, renewable energy, defense systems, and EV motors. “Recently, China denied supplying to us,” he said, referencing Beijing’s April 2024 export controls on certain rare earth-related items that triggered a global supply shortage.
The government’s production push aligns with the broader Make in India strategy and its commitment to securing supply chains for critical minerals. In January 2025, the Union Cabinet approved the National Critical Mineral Mission (NCMM) with an expenditure of ₹16,300 crore and an expected ₹18,000 crore investment from Public Sector Undertakings.
Finance Minister Nirmala Sitharaman first announced the creation of the Critical Mineral Mission during the 2024–25 Union Budget, aiming to ensure secure, local sources of essential minerals and materials amid geopolitical supply disruptions.
Industry leaders have welcomed the move. On Friday, Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA), praised the government’s incentives to boost domestic production, calling it a vital step toward building resilient supply chains.
The production of rare earth magnets in Hyderabad marks a strategic shift for India as it seeks to strengthen its manufacturing capabilities and reduce vulnerability to external shocks in critical sectors.
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