India plans to begin producing rare earth permanent magnets by year-end through a partnership with private companies, according to federal mining minister Kishan Reddy. The government approved a 73 billion rupee ($802 million) manufacturing program in November to reduce dependence on imports.

These magnets are critical for electric vehicles, aerospace, defense, and renewable energy sectors. India holds the world's third-largest rare earth reserves at 6.9 million tons but mines only a fraction due to limited private investment. The country's consumption is expected to double by 2030.

The initiative comes as China, which controls 90% of global rare earth magnet processing, restricted shipments last year, forcing Indian companies to scramble for supplies. The mining ministry and a state-run body have developed the technology and plan to establish four critical mineral processing plants across different states.