New Delhi, July 12,2025 : In a strategic push towards self-reliance in critical technologies, Union Minister for Coal and Mines G Kishan Reddy announced that India will begin rare earth magnet production in Hyderabad, breaking away from total dependence on China.
Speaking on Saturday, the minister said, “The Central Government has decided to produce rare earth magnets in Hyderabad. Our Mining Ministry’s NFTSM institute, in collaboration with industry partners, is working to develop the necessary machinery.”
He further revealed that the Centre will showcase its permanent magnet manufacturing capabilities within the next 3–4 months. The initiative, backed by Prime Minister Narendra Modi, involves a multi-ministerial collaboration to strengthen India’s foothold in the rare earth sector.
“We were 100% dependent on China for rare earth permanent magnets. But with China recently curbing exports, we are moving swiftly to fill the gap,” Reddy stated.
In April 2024, China imposed export restrictions on key rare-earth elements, leading to a global supply crunch and disrupting India’s access to these critical components.
Welcoming the move, ICEA Chairman Pankaj Mohindroo said the government’s commitment to boosting rare earth production, along with targeted incentives, will support the electronics and renewable energy sectors.
The announcement comes on the heels of Finance Minister Nirmala Sitharaman’s Union Budget 2024-25, which introduced the Critical Mineral Mission. In January 2025, the Union Cabinet approved the launch of the National Critical Mineral Mission (NCMM) with a planned expenditure of ₹16,300 crore and a projected investment of ₹18,000 crore from Public Sector Undertakings.
India’s rare earth push is not just an industrial move—it’s a geopolitical and strategic realignment aimed at reducing external vulnerabilities in a tech-driven future.
