India is expected to start domestic production of permanent magnets within the next two years, Hanif Qureshi, additional secretary, Ministry of Heavy Industries, said on Tuesday.
“We hope that in the next two years, there will be indigenous production of permanent magnets,” Qureshi said while speaking at the 5th Global Electrification Mobility Summit.
The Ministry of Heavy Industries recently launched a Rs 7,280-crore fund to support local manufacturing of rare earth and permanent magnets used in electric vehicles (EVs) and other applications.
Union minister for heavy industries H D Kumaraswamy said the government is focused on strengthening the entire value chain — from vehicle manufacturing and advanced batteries to charging infrastructure — so that India emerges not only as a major EV market but also as a global manufacturing hub.
Kumaraswamy said electric mobility is now central to India’s industrial and climate strategy. He added that the magnet scheme, along with other programmes like PM E-Drive and the PLIs for Auto and ACC, will help the industry achieve self-reliance.
Industry leaders said rising awareness and a series of new product launches are expected to drive deeper EV penetration in the coming period. They noted that globally, EV adoption shows a clear inflection point when market penetration reaches around 3.5–4.5%. Once this threshold is crossed, penetration typically accelerates rapidly to about 8–9%.
The magnet scheme aims to set up a manufacturing capacity of 6,000 metric tonnes per annum of rare-earth permanent magnets through integrated facilities that will convert rare-earth oxides to metals, metals to alloys, and alloys to finished products.
India’s automobile industry has faced significant uncertainty in recent years due to supply risks and price volatility linked to Chinese magnet imports. Dependence on China for magnets is seen as a strategic vulnerability, especially as EV adoption accelerates and demand for magnets rises.
Qureshi said supply-chain resilience has become a key priority as India positions itself as a major manufacturing hub for automobiles and EVs. He added that recent steps, including timeline extensions for localisation requirements, were aimed at giving the industry time to adjust and expand capacity.
Permanent magnets are a critical component in electric motors used in EVs, wind turbines, and industrial equipment. India currently imports most of its requirements, leaving manufacturers exposed to external shocks.
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