Rare Earth Permanent Magnets (REPM)

A Rare Earth Permanent Magnet (REPM) is a very strong magnet made using rare earth metals, mainly neodymium. A "permanent" magnet keeps its magnetism on its own, without electricity, unlike an electromagnet. REPMs are the strongest permanent magnets available for commercial use. Because they are so strong for their size, they allow small, light and efficient motors, which is why they sit inside electric vehicles, wind turbines, phones, drones, missiles and many home appliances.

Why do they matter so much?

Almost every machine that turns electricity into motion, or motion into electricity, needs a magnet. A stronger magnet means a smaller, lighter and more efficient motor. For an electric car, that means more distance per charge. For a wind turbine, it means more power from the same wind. Without REPMs, many such products become bigger, heavier, less efficient or simply cannot be made at current designs.

What are the main types?

• Neodymium-iron-boron (NdFeB) magnets: the most widely used and strongest type. Their main chemical form is Nd₂Fe₁₄B. Small amounts of dysprosium or terbium are often added so they keep their strength at the high temperatures found inside motors.
• Samarium-cobalt (SmCo) magnets: slightly weaker than NdFeB but work at much higher temperatures and resist rusting. They are preferred in defence, aerospace and some space uses.
• For comparison, ferrite magnets (made from iron oxide, with no rare earths) are cheap and common in fridges and simple motors, but much weaker.

Where did they come from?

Samarium-cobalt magnets were developed in the 1960s and 1970s. In 1982, NdFeB magnets were developed separately by two teams: Masato Sagawa at Sumitomo Special Metals in Japan, and John Croat at General Motors in the United States. Sagawa's team used the sintered method, while Croat's team used a method that leads to bonded magnets. NdFeB magnets were cheaper and stronger than samarium-cobalt, and soon became the global standard.

Sintered vs bonded magnets

This difference is important for the Indian scheme:

• Sintered magnets: metal alloy powder is pressed into shape inside a magnetic field and then heated until the particles fuse together without fully melting (this heating is called sintering). They are very strong and used in EV motors and wind turbines.
• Bonded magnets: magnet powder is mixed with a plastic or resin binder and moulded. They can be made in complex shapes but have only about one-third the strength of sintered NdFeB magnets.

How is a sintered magnet made? (step by step)

1. Separated rare earth oxides (for example, neodymium-praseodymium oxide, called NdPr oxide) are turned into metals.
2. The metals are melted with iron and boron to make an alloy.
3. The alloy is crushed into a very fine powder.
4. The powder is pressed into blocks while a strong magnetic field lines up the tiny particles in one direction.
5. The blocks are sintered (heated so the powder fuses).
6. The blocks are cut, shaped, coated (to stop rusting) and finally magnetised.

An integrated plant does all these steps, from oxide to finished magnet, at one place.

Who controls the supply?

As per the International Energy Agency, China made about 94% of the world's sintered permanent magnets in 2024. China also controls most of the mining and refining of the rare earths that go into them. India imports almost all its REPMs. Its imports rose from about 28,700 tonnes in 2023-24 to about 53,700 tonnes in 2024-25.

Between 2022 and 2025, China supplied about 60% to 80% of India's REPM imports by value and 85% to 90% by quantity. India's demand for REPMs is expected to double by 2030, driven by electric mobility and renewable energy.

India's main policy response: the REPM Scheme

On 26 November 2025, the Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets. Its key features:

• Total outlay: ₹7,280 crore.
• Target capacity: 6,000 tonnes per year (MTPA) of integrated sintered REPM manufacturing in India.
• Two kinds of support: sales-linked incentives of ₹6,450 crore on REPM sales for five years, and a capital subsidy of ₹750 crore for setting up the plants.
• Beneficiaries: up to five companies, chosen through global competitive bidding, each allotted up to 1,200 MTPA.
• Duration: seven years from the award, including a two-year gestation period (time to build the plant) and five years of incentives on sales.
• Integrated value chain: plants must cover the full chain from rare earth oxides to finished magnets.
• Raw material support: IREL (India) Limited will provide a limited assured supply of NdPr oxide to the three lowest bidders, to help them start.
• Nodal ministry: Ministry of Heavy Industries, which invited global bids in 2026 and received 20 bids by August 2026.

Other Indian examples

In 2023, a REPM plant was opened on the Bhabha Atomic Research Centre (BARC) campus in Visakhapatnam, run by IREL. It makes samarium-cobalt magnets using technology developed by BARC and the Defence Metallurgical Research Laboratory (DMRL), with an annual capacity of about 3,000 kg. This is small but strategic, as it serves defence and atomic energy needs.

Commonly confused concepts

• Permanent magnet vs electromagnet: A permanent magnet keeps its magnetism on its own. An electromagnet works only when electricity flows through a coil.
• NdFeB vs SmCo: NdFeB is stronger and cheaper, and used in EVs and wind turbines. SmCo works better at very high temperatures and is used in defence and aerospace.
• Sintered vs bonded magnets: Sintered magnets are fused by heat and are very strong. Bonded magnets use a resin binder, can be made in complex shapes, but are weaker. The Indian scheme supports sintered magnets.
• REPM Scheme vs PLI Scheme: Both give incentives linked to sales. But the REPM scheme also gives a capital subsidy, limits the number of companies to five, and requires a fully integrated plant from oxide to magnet.
• Rare earth magnets vs rare earth elements: The magnet is the finished product; the rare earth elements (like neodymium) are the raw inputs.

Issues, criticism and the way forward

• Raw material gap: Magnet plants need a steady supply of separated oxides and metals. India's oxide and metal-making capacity is still small, so plants may depend on imports at the start.
• Scale and price competition: Chinese makers produce at huge scale and low cost. New Indian plants of 1,200 tonnes each may struggle on price unless buyers sign long-term contracts.
• Technology and skills: Sintering and heavy rare earth use need advanced know-how, often protected by patents. Partnerships with Japan and other countries can help.
• Heavy rare earth dependence: High-temperature magnets need dysprosium and terbium, which China controls even more tightly. Research into magnets that use less of them is important.
• Way forward: link the magnet scheme with the National Critical Mineral Mission for raw materials; encourage recycling of magnets from old motors and electronics; create assured demand from EV makers, defence and wind energy; and build partnerships with trusted mineral-rich countries.

Concepts to Know

• Sintering: Heating pressed powder to a high temperature so that the particles stick together into a solid block, without fully melting it.
• Alloy: A metal made by mixing two or more elements, like neodymium, iron and boron.
• Sales-linked incentive: Money the government pays a company based on how much of a product it actually sells, so that support goes only to real production.
• Capital subsidy: Government money that pays for part of the cost of building a plant or buying machines.
• Gestation period: The time needed to build and start a new plant before it begins normal production.
• MTPA: Metric tonnes per annum, a way of measuring a plant's yearly production capacity.