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India Plans To Produce Rare Earth Magnets Domestically In 3-4 Months Amid China's Weaponisation Of Supply Chain Dominance

July 15, 2025 10 min read
author Anamika Mishra, Sub Editor
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India is racing against time to dismantle China’s near-total dominance over the global rare earth supply chain. In a decisive and urgent shift, Union Minister G. Kishan Reddy announced that India will begin domestic production of rare-earth permanent magnets within the next three to four months, a move that could significantly curb the country’s dependence on Chinese imports, which have historically accounted for almost 100% of its demand.  This announcement signals more than just industrial progress, it marks a calculated strategic pivot in India’s geopolitical and economic approach. China currently controls over 90% of global rare earth magnet production and its recent decision to improve export restrictions has sent shockwaves through industries worldwide from electric vehicles and renewable energy to electronics and defence manufacturing. For India, the message is clear: relying on a single foreign supplier, especially on increasingly using critical resources as tools of economic statecraft, is no longer viable.  India’s response is swift, structured and national in scope. The Non-Ferrous Materials Technology Development Centre in Hyderabad has already set up a pilot facility for magnet processing and the government is preparing to transfer this technology to domestic manufacturers by the end of 2025. Backed by a

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