3 min readNew DelhiUpdated: Feb 20, 2026 12:15 AM IST
India will start producing rare-earth permanent magnets (REPM) by the end of this year, Union Mines Minister G Kishan Reddy said on Thursday.
The minister said Hyderabad-based NonFerrous Materials Technology Development Centre (NFTDC) has developed domestic technology and private companies are being provided with the technology to develop REPMs.
Reddy was addressing a conference titled, ‘Indian critical mineral landscape: Foundation for a sustainable future’ organised by the Federation of Indian Chambers of Commerce & Industry (FICCI).
High-strength REPMs are crucial for a wide range of technologies, from electric vehicles and renewable energy systems to electronics, aerospace, and defence applications.
But their manufacturing is concentrated in a handful of countries, with China alone controlling over 90% in both manufacturing and processing of raw material needed to produce these magnets. In November, the government had approved a Rs 7,280 crore scheme to promote manufacturing of REPM.
Reddy also said the government has identified four states — Andhra Pradesh, Odisha, Gujarat and Maharashtra — to promote setting up of critical mineral processing plants.
“Domestic processing and refining capacity needs to be strengthened so that raw material export can be stopped and value creation happens in India,” he said, adding that “The Gujarat government has started work, the Andhra Pradesh government is also ready. We will discuss the same with the Odisha and Maharashtra CMs”.
Ongoing talks with the US and France
Reddy said India was in talks with the US, France, Canada and a few other countries to create an alternative supply chain for critical minerals and cut dependance on a “single” country.
“We are closely discussing with the US… will tell you when time comes,” he said, without disclosing further details.
“We also had a discussion with the mining minister of France and are working towards a road map,” Reddy said, adding that similar discussions are underway with a “group of countries” — except for one, in a veiled reference to China.
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These efforts aim to create an alternative supply chain so that no single country can hold a monopoly over the critical mineral value chain, the minister said. The minister’s remarks come at a time when India and the US have agreed on an interim trade deal earlier this month. A few days ago, External Affairs Minister S Jaishankar participated in the Critical Minerals Ministerial in Washington DC, conveying India’s support to the US-led FORGED (Forum on Resource, Geostrategic Engagement) initiative on critical minerals.
These efforts aim to create an alternative supply chain so that no single country can hold a monopoly over the critical mineral value chain, he said.
Govt funding for exploration
On the exploration front, the minister said over 4,000 critical mineral exploration-related activities have started in a short span of time. Under the National Mineral Exploration Trust (NMET), the government has provided 100% funding to 41 notified private exploration agencies, including start-ups, to undertake exploration work. He added that the scope of NMET has now been expanded to fund overseas mineral exploration projects as well.
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