India is addressing disruptions in the supply of Rare Earth Magnets (REM), particularly those imported from China, through a series of strategic measures aimed at enhancing domestic capacity and building resilient supply chains. According to data from the Directorate General of Commercial Intelligence and Statistics, India’s import dependency on China for REM remains significant, with value-wise reliance ranging from 63% to nearly 73% across different categories in 2024–25.
For permanent magnets made of other materials, imports from China rose to USD 50.42 million in 2024–25, accounting for 63% of total global imports. For metal-based permanent magnets, imports from China reached USD 110.68 million, representing 72.8% of total imports. In the case of electromagnetic lifting heads, China supplied USD 28.04 million worth, contributing 32.9% of the total.
Quantity-wise, the dependency is even more pronounced. In 2024–25, India imported over 218.9 million kilograms of other-material permanent magnets from China, which constituted 87.8% of global imports. Metal-based permanent magnets from China totaled 176.8 million kilograms, accounting for 88.8% of total imports. Electromagnetic lifting heads from China stood at 40.2 million kilograms, forming 66.9% of the total.
To counter this vulnerability, the government has launched the National Critical Mineral Mission, approved by the Union Cabinet on January 29, 2025. The mission includes key interventions to boost domestic production and reduce reliance on external sources for critical minerals, including Rare Earth Elements (REE).
The Ministry of Mines is actively funding research and development projects related to REE across institutions, laboratories, start-ups, and MSMEs. During 2023–24 and 2024–25, a total of 11 projects were approved with a combined outlay of Rs 93.3 million.
Industry bodies such as the Society of Indian Automobile Manufacturers and the Automotive Component Manufacturers Association have provided detailed assessments of both short-term and long-term impacts of the supply disruption. Their inputs are guiding policy responses to ensure continuity and competitiveness in the automotive and allied sectors.
This information was provided by Minister of State for Heavy Industries and Steel Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha.
