India’s push toward clean mobility, green energy, and advanced manufacturing is facing a hidden vulnerability: its near-total reliance on imported rare-earth magnets. A new report by Primus Partners, From Extraction to Innovation: A Blueprint for Enhancing Rare Earth Magnet Ecosystem in India’s EV Roadmap, outlines a national strategy to address this gap and build a self-reliant, globally competitive ecosystem for neodymium–iron–boron (NdFeB) magnets.
The report underscores the urgent need to localise the rare earth magnet value chain, from upstream mining and separation to downstream magnet-making, if India is to meet its electric vehicle (EV) targets, safeguard strategic sectors, and emerge as a clean-tech leader.
A Five-Pillar Blueprint:
1. Market Assurance
Government-backed price guarantees and long-term offtake agreements with anchor buyers in auto, renewables, and defence to counter global price volatility, which has seen neodymium swing from US$50/kg to US$280/kg. With demand set to rise to ~7,150 tonnes by 2030, stable pricing will unlock private investment.
2. Pilot Hubs and Champions
Set up pilot-scale clusters in mineral-rich states like Odisha, Andhra Pradesh, and Tamil Nadu, integrating mining, processing, and magnet-making. Identify at least three industrial “champions” capable of rapid scale-up to tap into a global NdFeB magnet market projected at 131 kt by 2030.
3. Upstream Security
Expand IREL’s 1,500-tonne/year NdPr oxide capacity and leverage India’s 13.07 million tonnes of monazite reserves. Create a strategic magnet reserve to safeguard critical sectors from supply shocks, ensuring at least six months of domestic needs are covered.
4. Innovation Infrastructure
Launch a National Rare Earth Innovation Hub to advance R&D in process optimisation, recycling, and high-performance magnet grades. Recycling alone could supply 35–40 kt of global demand by 2030, reducing reliance on primary mining.
5. Institutional Alignment
Form a Magnet Ecosystem Coordination Cell to align ministries, fast-track clearances, and monitor progress. With a 3-5 year window, to secure a global role, coordinated action is critical.
