Assessment of Rare Earth Permanent Magnet Demand in India
The Ministry of Heavy Industries has released an assessment of India's Rare Earth Permanent Magnet (REPM) demand projections for the year 2030, conducted by IREL (India) Limited, Defence Metallurgical Research Laboratory (DMRL), and Bhabha Atomic Research Centre (BARC). The comprehensive sector-wise analysis projects total consolidated REPM demand in India at 8,220 metric tonnes per annum (MTPA) by 2030.
Sector-wise Demand Breakdown
Electric vehicles (2/3/4 wheelers) constitute the largest demand segment at 3,250 MTPA, representing approximately 39.5% of total projected demand. Wind turbine applications follow as the second largest segment at 1,800 MTPA (21.9% of total), while BLDC fans account for 980 MTPA (11.9%). Industrial motors for various applications are projected to require 500 MTPA, smart phones and computers 600 MTPA, and solar-powered pumps 170 MTPA. Elevator and escalator motors account for 100 MTPA, with other applications including consumer electronics contributing 820 MTPA to the total demand.
Current Capabilities and Resource Base
As of current data, the Geological Survey of India (GSI) has augmented cumulative Rare Earth Element (REE) ore resources totaling 767 million tonnes across the country, evaluated at different cut-off values and average grades since the MMDR Amendment Act, 2015. India currently possesses upstream capabilities in mining, separation, and oxide refining of rare earth elements. However, the assessment identifies a significant gap in industrial-scale midstream capabilities required for oxide-to-metal, metal-to-alloy, and alloy-to-magnet conversion processes.
Policy Response and Manufacturing Scheme
Due to these capability gaps, India currently imports 100% of its sintered NdFeB REPM requirements for downstream applications. To address this dependency, the Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) on November 26, 2025, with a financial outlay of ₹7,280 crore. The scheme was formally notified on December 15, 2025, aimed at bridging the midstream manufacturing gap and developing domestic REPM production capabilities.
This information was formally presented by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma, in a written reply to the Lok Sabha on July 21, 2026.