India REPM Plant Scheme Receives 20 Bids for Rare-Earth Magnet Capacity

On August 13, 2026, the Ministry of Heavy Industries received 20 bids under the India REPM Plant Scheme, which carries an allocation of INR 72.80 billion for establishing integrated sintered NdFeB rare-earth permanent magnet plants. Technical bids were opened on the same day, with participating bidders including 20 Microns, Attero Recycling, Coal India, Larsen & Toubro, Lohum Magnets, NEO Performance Materials, Proterial (India), Prozeal Green Energy and other companies. The bidding exercise represents a major step toward building domestic manufacturing capability for rare-earth permanent magnets in India.

India Targets 6,000 MTPA REPM Manufacturing Capacity

The scheme was approved in November 2025 and is designed to establish 6,000 metric tonnes per annum of rare-earth permanent magnet capacity in India. The planned capacity will be allocated to five beneficiaries, with each beneficiary eligible for up to 1,200 MTPA over a seven-year period. The initiative focuses specifically on integrated sintered NdFeB REPM manufacturing, supporting the development of domestic production capabilities across the rare-earth magnet value chain. The selected projects are expected to strengthen India's ability to manufacture these critical magnetic materials domestically while supporting broader industrial and strategic objectives.

Rare-Earth Magnets Support Multiple Strategic Industries

Sintered NdFeB rare-earth permanent magnets are critical components across several high-technology industries because of their magnetic performance and compact form factor. Their applications include electric vehicles, wind turbines, electronics, aerospace and defence systems. The domestic manufacturing initiative is therefore relevant not only to vehicle electrification but also to renewable-energy generation, advanced electronics and strategically important industrial applications. By encouraging integrated production capacity, the scheme is intended to reduce India's dependence on imported permanent magnets and improve the resilience of domestic supply chains for industries that require reliable access to advanced magnetic materials.

Bidder Participation Signals Broad Industrial Interest

The 20 bids include companies spanning recycling, mining, engineering, materials and clean-energy activities, indicating broad industrial interest in developing India's rare-earth magnet manufacturing ecosystem. The participating companies include Coal India, Larsen & Toubro, Lohum Magnets, NEO Performance Materials, Proterial (India) and Prozeal Green Energy, alongside other bidders. The range of participants highlights the potential for different industrial capabilities to contribute to the new REPM supply chain. The scheme ultimately aims to establish domestic capacity that can support growing demand from strategic sectors while contributing to India's longer-term objective of reducing import dependence.

Frequently Asked Questions

What is the India REPM Plant Scheme?
The India REPM Plant Scheme is a government initiative approved in November 2025 to establish 6,000 metric tonnes per annum of integrated sintered NdFeB rare-earth permanent magnet capacity. Under the INR 72.80 billion scheme, five beneficiaries will receive capacity allocations of up to 1,200 MTPA each over seven years. The programme is intended to strengthen domestic manufacturing, reduce dependence on imported rare-earth permanent magnets and support industries including electric vehicles, wind turbines, electronics, aerospace and defence. Technical bids from 20 bidders were opened on August 13, 2026.