Yes. Government of Indiais aware of import dependence of the automotive sector, particularly electric & hybrid vehicles, on rare-earth permanent magnets. This dependence has lead to supply-chain vulnerability for OEMs utilizing rare earthmagnets.

Government is exploring alternative supply of rareearth magnets. Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components (PLI-Auto Scheme) is strengthening domestic capability throughlisting “rare earth magnets for xEV motors” as an Advanced Automotive Technology component and promote domestic development of alternative (rare earth free) motor technologies& its components. Further, Union Cabinet on 26.11.2025 approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of Rs.7280 croreto establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.

This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha today.

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TPJ/NJ

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