{"id":60061,"date":"2025-11-28T19:09:05","date_gmt":"2025-11-28T13:39:05","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=60061"},"modified":"2025-11-29T12:14:39","modified_gmt":"2025-11-29T06:44:39","slug":"india-integrated-repm-scheme","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/28-11-2025\/india-integrated-repm-scheme","title":{"rendered":"Toward Strategic Autonomy: India\u2019s First Integrated REPM Scheme"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/Governance; GS3\/ Science<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Cabinet chaired by Prime Minister Narendra Modi has approved the \u201cScheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets\u201d with a financial outlay of \u20b97,280 crore.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the Scheme<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This<strong> first-of-its-kind initiative<\/strong> aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated <strong>Rare Earth Permanent Magnet (REPM)<\/strong> manufacturing capacity in India.\n<ul class=\"wp-block-list\">\n<li>REPMs\u2014such as <strong>Neodymium-Iron-Boron (NdFeB)<\/strong> and <strong>Samarium Cobalt (SmCo)<\/strong>\u2014are among the strongest permanent magnets in the world.<\/li>\n\n\n\n<li>Capacity will be allocated to <strong>five beneficiaries<\/strong> through a global competitive bidding process, each receiving up to <strong>1,200 MTPA<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The Scheme will support the creation of integrated REPM manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.<\/li>\n\n\n\n<li>Duration of scheme: <strong>7 years<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>2 years<\/strong>: Gestation period<\/li>\n\n\n\n<li><strong>5 years<\/strong>: Incentive disbursement<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Does India Need This?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rising Demand:<\/strong> REPMs are critical for industries such as: electric vehicles, renewable energy, electronics &amp; smartphones, aerospace and defence and strategic systems. India\u2019s demand for REPMs is projected to <strong>double by 2030<\/strong>.<\/li>\n\n\n\n<li><strong>Heavy Import Dependence: <\/strong>India currently <strong>imports nearly all<\/strong> of its ~900 tonnes annual REPM requirement.\n<ul class=\"wp-block-list\">\n<li>Global supply shortages (2021\u201322) caused price spikes of <strong>200\u2013300%<\/strong>, exposing India\u2019s vulnerability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strategic Autonomy: <\/strong>REPMs are classified as Critical Materials globally. Securing REPM production aligns with:\n<ul class=\"wp-block-list\">\n<li>Atmanirbhar Bharat<\/li>\n\n\n\n<li>National Security Strategy<\/li>\n\n\n\n<li>Net Zero 2070<\/li>\n\n\n\n<li>Viksit Bharat @2047<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Mineral Potential:<\/strong> India has the <strong>world\u2019s 5th-largest rare earth reserves<\/strong> (~6.9 million tonnes), primarily located in Andhra Pradesh, Odisha, Kerala, Jharkhand and Rajasthan.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Technological Complexity: <\/strong>NdFeB and SmCo magnet production involves ultra-high vacuum sintering and cryogenic milling.\n<ul class=\"wp-block-list\">\n<li>India lacks trained metallurgists and engineers specializing in rare earth magnet technologies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>China\u2019s Dominance: <\/strong>China controls ~85\u201390% of global REPM production, making competition difficult.<\/li>\n\n\n\n<li><strong>High Capital Costs: <\/strong>Integrated REPM facilities require high-temperature furnaces, rare earth purification units and powder metallurgy lines.<\/li>\n\n\n\n<li><strong>Environmental and Regulatory Issues: <\/strong>Wastewater from rare earth processing contains radioactive thorium and heavy metals.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps Taken by India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/10-04-2025\/national-critical-mineral-mission\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/10-04-2025\/national-critical-mineral-mission\">National Critical Mineral Mission (NCMM)<\/a>: <\/strong>Launched in 2025, to establish a robust framework for self-reliance in the critical mineral sector.\n<ul class=\"wp-block-list\">\n<li>Under this mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects from 2024-25 to 2030-31.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strengthening Domestic Capacity: <\/strong>IREL (India) Limited, under the Department of Atomic Energy, is modernising processing facilities.\n<ul class=\"wp-block-list\">\n<li>Department of Atomic Energy (DAE) developing <strong>rare earth metal reduction &amp; alloying technologies<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>International Partnerships: <\/strong>&nbsp;MoUs with <strong>Australia, U.S., Europe, and Japan<\/strong> on critical mineral supply and technology sharing.\n<ul class=\"wp-block-list\">\n<li>India joined the <strong>Minerals Security Partnership (MSP)<\/strong> in 2023.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Demand-Side Drivers:<\/strong> Production Linked Incentive (PLI) scheme for solar modules, electronics, drones, auto &amp; EV components.\n<ul class=\"wp-block-list\">\n<li>The EV mission alone could require <strong>15,000\u201320,000 tonnes of REPMs annually by 2047<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Research &amp; Innovation: <\/strong>BARC, ARCI, and IITs advancing \u2014 high-performance magnet research, recyclable magnets and waste-free extraction technologies.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This initiative marks a <strong>transformational step<\/strong> toward building a self-reliant and competitive REPM ecosystem in India.&nbsp;<\/li>\n\n\n\n<li>By fostering indigenous manufacturing, it will secure critical supply chains, support electric mobility and renewable energy, and strengthen national defence capabilities.<\/li>\n\n\n\n<li>The scheme contributes to India\u2019s <strong>Net Zero 2070<\/strong> goals, reduces import dependence, and aligns with the broader vision of <strong>Viksit Bharat @2047<\/strong>\u2014creating a technologically advanced, globally competitive, and sustainable industrial base.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2194684&amp;reg=3&amp;lang=2\" target=\"_blank\" rel=\"noopener\">PIB<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">The Union Cabinet chaired by Prime Minister Narendra Modi has approved the \u201cScheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets\u201d with a financial outlay of \u20b97,280 crore.<\/li>\n<p><\/p>\n<p><strong>About the Scheme<\/strong><\/p>\n<li class=\"ms-5\">This first-of-its-kind initiative aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing capacity in India.<\/li>\n<li class=\"ms-5\">REPMs\u2014such as Neodymium-Iron-Boron (NdFeB) and Samarium Cobalt (SmCo)\u2014are among the strongest permanent magnets in the world.<\/li>\n<li class=\"ms-5\">Capacity will be allocated to five beneficiaries through a global competitive bidding process, each receiving up to 1,200 MTPA.<\/li>\n<li class=\"ms-5\">The Scheme will support the creation of integrated REPM manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/28-11-2025\/india-integrated-repm-scheme\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-60061","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/60061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=60061"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/60061\/revisions"}],"predecessor-version":[{"id":60129,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/60061\/revisions\/60129"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=60061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=60061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=60061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}