Odisha Emerges as Hub for Rare Earth Permanent Magnets

India is moving fast to secure its future in Rare Earth Permanent Magnets, rolling out a national plan that links mining, processing, research, and advanced manufacturing.

With the current drive to self-sufficiency, Odisha has become a center stage state, as well as Kerala, Andhra Pradesh, and Tamil Nadu, as the nation strives to reduce importation of critical minerals.

This has been announced by the Union Budget 2026-27, which will be launched in these four states Dedicated Rare Earth Corridors. These corridors will develop a complete ecosystem, which includes mineral mining, beneficiation, research, and high value production. The aim is to position India as a serious contender in the world in the area of sophisticated materials and enhance local supply chains.

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The centre of this endeavor is the Rs 7,280 crore Rare Earth Permanent Magnets Manufacturing Scheme that has been approved by the Union Cabinet in November 2025. The objective of the program is the establishment of 6,000 metric tonnes per annum of integrated magnet producing capacity, that will cover the entire value chain between the rare earth oxides and finished magnets.

The plan provides sales incentives of Rs 6,450 crore in sales incentives in five years and capital incent of Rs 750 crore in advanced facility support. The capacity shall be distributed among up to five firms to be chosen after a global competitive bidding process with two years establishment period and five years of performance incentive period.

Electric vehicles, wind turbines, electronics, aerospace, and defense are important to rare earth permanent magnets. In the process of domestic capacity building, India is supporting its clean energy ambitions and enhancing strategic independence in the long-term.