INDIA IS SET TO TRIPLE RARE EARTH MAGNETS PLAN TO $788 MILLION

India plans to almost triple the size of its incentive program for rare earth magnet manufacturing to more than Rs 7,000 crore ($788 million) as it races to build domestic capacity in a sector dominated by China, according to people familiar with the matter.

- TDG NETWORK

The proposal, awaiting cabinet approval, represents a significant step-up from an earlier $290 million plan aimed at securing critical materials for electric vehicles, renewable energy and defense, the people said, asking not to be identified as the information isn't public.

The final allocation could still change, they said.

Earlier, Moneycontrol reported that the finance ministry has approved a plan to set up rare earth magnet processing units and supply chains in the country.

India is joining several nations in accelerating efforts to develop a supply chain for rare earth magnets after China — which processes about 90% of global output — tightened export controls in April amid its trade dispute with the US, disrupting supplies for automakers worldwide.