Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets
Why in news?
Union Cabinet has approved a ₹7,280 crore scheme to promote the manufacturing of sintered rare earth permanent magnets (REPM), aiming to establish an annual domestic capacity of 6,000 metric tonnes across five high-capacity integrated facilities.
Features of the scheme
- The scheme duration is seven years, including a two-year gestation period for setting up facilities, followed by five years of sales-linked incentive support for manufactured REPM.
- Only five beneficiaries will be selected through a global competitive bidding process, each allotted up to 1,200 metric tonnes of manufacturing capacity annually.
- Support will be provided both as capital subsidy for establishing facilities and as incentives based on the sale of sintered NdFeB (neodymium-iron-boron) magnets, a critical material for high-tech industries.
- Value Chain Strengthening: The scheme covers the entire manufacturing chain: converting rare earth oxides to metals, metals to alloys, and alloys to finished magnets.
Strategic Importance
- REPMs are vital for many advanced technologies, and India’s current demand (~4,000 tonnes/year) is expected to double by 2030.
- These magnets enhance energy efficiency and enable miniaturization across clean tech, transport, and high-tech industries, supporting India's push for self-reliance amid global supply risks.
Key Applications
- Electric Vehicles (EVs): Used in traction motors, power steering, and wiper systems for high torque and efficiency, enabling lighter designs and longer range.
- Renewable Energy: Critical in wind turbine generators to convert wind into electricity with compact, high-energy-density components.
- Defense and Aerospace: Employed in drones, satellites, fighter jets, missiles, and actuators for reliable performance under extreme conditions.
Industrial and Consumer Uses
- Electronics and Motors: Power hard drives, speakers, headphones, industrial machinery, generators, and magnetic sensors/actuators.
- Medical Devices: Integral to MRI systems for strong, stable fields in imaging, and dental prosthetics.
- Other Sectors: Applied in magnetic separators for mining/recycling, robotics, door locks, pumps, and jewelry.
The initiative will bolster India’s competitiveness in the global market, drive innovation in indigenous manufacturing, and align with key national missions like Atmanirbhar Bharat and Viksit Bharat @2047.
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