Govt invites bids to build 5 rare earth magnet units

Chennai: The Ministry of Heavy Industries has invited bids to set up five integrated facilities to manufacture sintered NdFeB (neodymium-iron-boron) magnets, a segment in which the country remains wholly import-dependent.Under the scheme, each unit must produce a minimum of 600 tonnes per annum (MTPA), scalable up to 1,200 MTPA, with a total national capacity target of up to 6,000 MTPA. The incentive package includes sales-linked support capped at Rs 2,150 per kg and a 15% capital subsidy on eligible investments. The scheme will run for seven years, with contracts awarded to bidders seeking the lowest subsidy.India, however, is not short of raw materials. It possesses some of the world's largest rare earth reserves, mostly along its coasts. IREL, a state-owned firm under the Department of Atomic Energy, already mines and refines these into oxides. Its current output of NdPr oxide—about 400 tonnes a year, along with a stockpile of 500 tonnes—could support roughly 1,500 tonnes of magnet production.Yet a notable gap persists in the middle of the value chain. The conversion of oxides into metals, alloys and finished magnets has yet to take root at scale, leaving India to import all its requirements. Under the new plan, IREL will supply raw material to three winning bidders, while the rest will have to source it independently.NdFeB magnets are indispensable to electric vehicles, wind turbines and modern weaponry. With global supply heavily concentrated in a single geography, India's import reliance is seen as a key vulnerability.