India has approved a ₹7,280 crore (72.8 billion rupees) incentive scheme to boost the domestic manufacturing of rare earth permanent magnets (REPMs). This initiative is a strategic move to reduce the country’s reliance on imports, particularly from China, for critical components used in sectors like electric vehicles (EVs), renewable energy, aerospace, and defense.
The “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets” has a total financial outlay of ₹7,280 crore.
Sales-linked incentives: ₹6,450 crore over five years on REPM sales.
Capital subsidy: ₹750 crore for setting up manufacturing facilities.
The scheme aims to establish a domestic REPM manufacturing capacity through a competitive bidding process. The scheme duration is seven years, with two years for setting up facilities and five for incentive distribution.
The goal is to create a domestic supply chain for REPMs. Demand for REPMs in India is expected to increase, driven by the EV and clean energy sectors. While India currently lacks dedicated rare earth companies, the policy could potentially benefit diversified firms and mineral miners.
Owais Metal and Mineral Processing Ltd
Owais Metal and Mineral Processing Ltd is involved in the rare earth mineral business through the recycling of rare earth mineral waste. The company has developed in-house technology to extract critical metals like tantalum, tin, and niobium from industrial slag with a purity of 99.9%. This waste-to-wealth approach helps reduce India’s dependency on imported rare metals.
The company recently marked its entry into the rare earth market with its first commercial sale of Tantalum Pentoxide (Ta2O5), a compound used in the electronics and optical industries.
Owais Metal has a daily recycling capacity of 100 kg for rare earth minerals, projecting annual revenues of about Rs 580 million from this area.
In addition to rare earth minerals, the company’s core operations include the manufacturing and processing of Manganese Oxide (MNO), MC Manganese/Ferro Manganese, and Wood Charcoal, along with processing Quartz and manganese ore.
Gujarat Mineral Development Corporation
Gujarat Mineral Development Corporation (GMDC) is transitioning from its traditional focus on lignite to becoming a key player in India’s Rare Earth Elements (REE) sector, specifically through the development of a domestic supply chain for high-tech applications like electric vehicles (EVs) and renewable energy.
GMDC aims to produce 12,000 tonnes of Rare Earth Oxides (REO) annually, with large-scale production anticipated to commence by Fiscal Year 2028 & On January 19, 2026, GMDC secured indigenous processing technology from the Bhabha Atomic Research Centre (BARC) specifically for the recovery of rare earth values from the Ambadongar ore.
The company has earmarked ₹3,000–4,000 crore for critical mineral projects. Recent reports indicate government support could boost this investment plan to ₹5,000 crore to enhance domestic production.
Hindustan Zinc Ltd
In 2026, Hindustan Zinc Limited (HZL)—a subsidiary of the Vedanta Group—is aggressively diversifying from its core zinc and silver business to become a major player in the rare earth elements (REE) and critical minerals sector.
In 2025, HZL became one of the first private companies in India to secure a land-based Rare Earth Element (REE) block. Located in the Sonbhadra district of Uttar Pradesh (Nawatola-Laband block), this 210.01-hectare deposit contains monazite, a critical source of neodymium used for permanent magnets in electric vehicles (EVs) and wind turbines & The company aims to derive 30% of its total revenue from rare earth and critical minerals by 2030.
The company has floated international tenders for AI- and drone-led exploration to identify viable mineral reserves more efficiently.
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