Highlights

• India aims to begin domestic production of rare-earth permanent magnets by December 2026, partnering with NFTDC to transfer indigenous magnet technology to the private sector and reduce its 95% dependency on critical mineral imports.
• The strategic move would position India among a small group of countries producing sintered rare earth magnets outside China's dominant 85-90% global processing and manufacturing control.
• Success hinges on unresolved factors, including production capacity tonnage, heavy rare earth supply security, upstream separation capabilities, and sustained vertical integration from oxide processing to finished magnets.

---

India plans to start domestic production of rare earth permanent magnets by the end of 2026, according to Mines Minister G. Kishan Reddy. (opens in a new tab) The government says it has developed indigenous magnet technology with the Nonferrous Materials Technology Centre (NFTDC (opens in a new tab)) and will now transfer it to the private sector. Equipment is reportedly nearly installed. For a general reader: India wants to stop importing most of its magnets and start making them at home.

That ambition matters.

The StrategicContext: A 95% Dependency Problem

The minister acknowledged that India imports roughly 95% of its critical minerals, including lithium, cobalt, nickel, and rare earth elements. That framing is directionally accurate. India relies heavily on imports for processed rare earth materials and permanent magnets used in EVs, renewables, defense, electronics, and telecom.

Globally, China controls approximately 85–90% of rare earth processing capacity and the majority of NdFeB magnet manufacturing. India has reserves, but processing and downstream magnet production have been limited.

Domestic magnet production is therefore not symbolic. It is structural.

What’s Promising — And What’s Unclear

Developing indigenous magnet technology with NFTDC is a positive signal. If equipment is indeed installed and production begins by December, India will join a very small group of countries producing sintered rare earth magnets at scale outside China.

But critical questions remain:

• What annual tonnage capacity is planned?
• Is heavy rare earth (dysprosium, terbium) supply secured?
• Will upstream separation be domestic or still import-dependent?
• Are there price stabilization mechanisms to support private capital?

Announcing productionis easier than sustaining throughput.

 Avoiding Celebration Before Scale

Calling this a “very big achievement” is understandable political framing. However, the true achievement will be measured in sustained output, quality certification (automotive-grade magnets), and vertical integration from oxide to magnet.

Rare earth magnet manufacturing requires synchronized scaling: separation, alloying, powder processing, compaction, sintering, magnetization, and testing. One missing link breaks the chain.

India’s move is notable because it aligns with broader global diversification efforts. But until volumes, feedstock security, and integration are clarified, investors should treat this as a strategic beginning — not yet astructural shift.

Ambition has been declared.

Now the industrial math begins.

Profile

The Non-Ferrous Materials Technology Development Centre (NFTDC) in Hyderabad is an autonomous, self-financing R&D institution under India’s Ministry of Mines, established in the early 1990s to advance applied materials science and scalable industrial process technologies. Bridging laboratory research and commercial deployment, NFTDC specializes in advanced materials development, engineering design and analysis, and integrated electronics, instrumentation, and control systems, with a strong focus on pilot-plant validation and industrial scale-up rather than purely academic output. While its mandate spans the broader non-ferrous materials sector, NFTDC has played a direct role in India’s rare earth and critical minerals strategy, including assisting Singareni Collieries in developing a pilot plant to extract rare earth elements (REEs) from overburden and fly ash, and participating in demonstration projects involving REE extraction and Nd/Pr magnet precursor and alloy development.

Positioned at the intersection of materials science, metallurgy, and industrial engineering, NFTDC supports India’s broader technological self-reliance agenda by strengthening domestic capabilities in magnets, power electronics, and advanced materials critical to electric vehicles, defense systems, renewable energy, and electrification infrastructure.