The Mint reported on November 26 that the Indian cabinet has approved a manufacturing incentive scheme worth 72.8 billion rupees (₹7,280 crore) for rare earth permanent magnets (REPM). Rare earth permanent magnets are critical materials in fields such as electric vehicles, renewable energy, aerospace, and defense equipment. This plan is India's first initiative to support the manufacturing of rare earth permanent magnets, aiming to establish a complete manufacturing ecosystem for rare earth permanent magnets in India, reduce reliance on imports, and enhance the resilience and competitiveness of India's supply chain. The plan spans seven years and includes a capital subsidy of 7.5 billion rupees (₹750 crore) and a sales incentive of 64.5 billion rupees (₹6,450 crore). Five companies will be selected through a global competitive bidding process, and they will jointly form an annual capacity of about 6,000 tons, promoting India's self-reliance in the production of rare earth permanent magnets within 3-4 years. Analysts pointed out that India's annual demand for rare earth permanent magnets is approximately 4,000 to 5,000 tons, but it is highly dependent on imports, which has long made supply security difficult to guarantee. Ashwini Vaishnaw, the Minister of Electronics and Information Technology of India, stated that the plan will adopt a "whole-of-government" approach, working in coordination with India's "Semiconductor Mission" and the "National Critical Minerals Mission (NCMM)" to address global supply chain risks. Analysts pointed out that India's rare earth reserves amount to 6.9 million tons (6.9 million), ranking third in the world. The real shortcoming is not the supply of rare earth resources, but the lack of capabilities in refining and processing. If India can advance technology acquisition, environmental governance, and other aspects in a coordinated manner, this plan is expected to become an important pillar for India's energy transition and manufacturing upgrade.
Original: www.toutiao.com/article/1849960055897164/
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