India to begin permanent magnet production by year-end, says G Kishan Reddy

India to begin permanent magnets production by year-end, says G Kishan Reddy

• India to start permanent magnet production by year-end
• Four states chosen for critical minerals processing units
• Over 4,000 critical mineral exploration activities underway

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India will start production of permanent magnets by the end of this year, Union Minister of Coal & Mines G Kishan Reddy said on February 19. He added that India is positioning itself as an attractive destination in the global critical minerals landscape to secure its strategic and economic future.

The government in November 2025 approved the scheme to promote manufacturing of sintered rare earth permanent magnets with a financial outlay of Rs 7,280 crore. The scheme aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global market.

The minister further said that four states including Andhra Pradesh, Odisha, Maharashtra and Gujarat, have been identified for establishing Critical Minerals Processing Units to boost domestic value addition and reduce import dependence.

Additionally, 143 coal mines have been identified under Mine Closure Activities, to be completed by 2028, with a focus on sustainable transition and resource optimisation.

“The government is working in Reform Express mode for the critical minerals sector to reduce import dependence and boost domestic production. The central government along with state governments, and all stakeholders, are committed to working in unity to accelerate reforms in the critical minerals sector,” Reddy said.

He added that nine Centers of Excellence (CoE) have been identified to bolster research and development, innovation and skill development in the sector.

Reddy noted that work has commenced under the National Critical Minerals Mission with an outlay of Rs 32,000 crore. “Over 4,000 critical mineral exploration activities have already been initiated across the country. We are strengthening the entire value chain, from exploration to advanced processing, to ensure India converts its resource potential into strategic advantage,” he said.

The minister also urged industry stakeholders to invest in advanced technologies, urban mining, recycling and global asset acquisition to ensure India’s emergence as a trusted and self-reliant leader in the global critical minerals ecosystem.

The government, he said, is also supporting the industry by exempting import duty on importing of raw materials for critical minerals and for this separate fund has been created. To further boost the sector, the government is supporting the National Mineral Exploration Trust, he added.

The government is working to further strengthen global partnerships for overseas asset acquisition for mineral exploration.