India invites global bids for rare earth magnet manufacturing units

The Ministry of Heavy Industries has invited global bids for setting up integrated manufacturing facilities for sintered rare earth permanent magnets (REPM), as part of a government push to strengthen domestic production and reduce import dependence.In an official statement, the ministry said it has issued a Request for Proposal (RFP) to select beneficiaries for establishing NdFeB-based REPM manufacturing units with a total capacity of 6,000 metric tonnes per annum (MTPA).“With this bidding process, prospective applicants can submit their bids to establish integrated sintered NdFeB REPM manufacturing facilities in India and become eligible for capital subsidy as well as sales-linked incentives under the scheme,” the statement said.
According to information,the scheme offers substantial financial support, including a capital subsidy of Rs750 crore and sales-linked incentives worth Rs6,450 crore. Each selected entity will be allocated production capacity ranging from 600 MTPA to 1,200 MTPA.Rare earth permanent magnets are critical components used across key sectors such as electric vehicles, wind energy, electronics, aerospace, and defence. The initiative aims to build a complete domestic value chain—from raw materials like NdPr oxide to finished magnets—thereby reducing reliance on imports.
The bidding process will be conducted online through a transparent Least Cost System (LCS) in two stages—technical and financial—via the Central Public Procurement Portal.Tender documents will be available from March 20, 2026, with the deadline for bid submission set for May 28, 2026. Technical bids are scheduled to be opened on May 29, 2026.To ensure raw material security, the scheme also provides for assured supply of NdPr oxide through IREL (India) Ltd. for select bidders.
According to the Ministry of Mines, India’s rare earth market remains heavily import-dependent, with China being the dominant supplier. In response to recent Chinese export restrictions, India has launched the National Critical Mineral Mission to diversify sourcing and strengthen domestic capabilities.A report by CRISIL noted that China imposed export curbs in April 2025 on several rare earth elements and finished magnets, requiring export licences and causing delays of at least 45 days. The resulting backlog has tightened global supply chains.India, which sourced over 80 per cent of its 540-tonne magnet imports from China in the last fiscal, has been significantly impacted, the report added.