In November 2025, India approved a 73 billion rupee ($800 million) plan to produce 6,000 tonnes of permanent rare earth magnets each year within seven years. These magnets are key for electric vehicles, smartphones, wind turbines, and defense gear. India currently imports 80-90% of these magnets and their raw materials from China, which dominates over 90% of global rare earth processing. Last year, China tightened exports during a trade dispute, exposing India's vulnerability and pushing EV makers to seek alternatives. The new plan aims to cut this dependence and meet expected booming domestic demand, set to double in five years. Selected manufacturers will get capital and sales-linked incentives. However, experts warn that money alone is not enough. India lacks commercial-scale experience and advanced magnet-making technology, unlike Japan, Germany, and South Korea. "India will need strategic partnerships to import technology, skill up its workforce and then build its own capabilities," said Neha Mukherjee of Benchmark Mineral Intelligence. Research centres like the Bhabha Atomic Research Centre have started magnet projects, but no commercial output is reported yet. India has the world's third-largest rare earth reserves but currently mines less than 1% globally. Most reserves are in coastal states, but only one mine in Andhra Pradesh is operational. India recently halted exports from this mine to secure domestic supply. Even so, India holds mainly lighter rare earths like neodymium but lacks heavier elements such as dysprosium and terbium, critical for high-performance magnets. So, some raw materials may still come from China. Demand exceeds current production; India uses about 7,000 tonnes annually, so producing 6,000 tonnes by 2032 may not fully close the gap. Additionally, Indian magnets must be priced competitively against cheaper Chinese imports to succeed. Rajnish Gupta of EY India said, "The hope is that Indian players will continue to put in their entrepreneurial energy and get the ecosystem going." Despite challenges, this plan marks a bold step towards India's goal of rare earth self-reliance and reducing China’s grip on this vital supply chain.