Amid escalating global concerns over China's rare earth export controls, Union Minister for Coal and Mines G Kishan Reddy on Saturday announced that the Central Government has decided to begin production of rare earth magnets in Hyderabad. The move is a key step in India's larger push towards self-reliance in critical technologies.

Speaking to ANI, the minister said, "The Central Government has decided to produce rare earth magnets in Hyderabad. Our Mining Ministry's NFTSM institute is working diligently, along with various industries, to manufacture the necessary machinery."

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Reddy added that the government will soon demonstrate its progress in domestic magnet manufacturing. "Within the next 3-4 months, they will showcase their efforts in manufacturing permanent magnets. This initiative involves collaboration between the industry, mining, and other ministries, and has been discussed with Prime Minister Narendra Modi. The Central Government is working seriously towards the production of rare earth magnets," he said.

The minister also acknowledged India’s past reliance on China for critical rare earth supplies. "We were 100 per cent dependent on China for rare earth permanent magnets, but recently China denied supplying to us," Reddy said.

In April 2024, China imposed export controls on certain rare earth materials, triggering global shortages and disrupting supply chains, including in India. The move has prompted countries to diversify sources and invest in domestic capacities.

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Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), welcomed the Centre’s initiative, particularly the planned incentives for ramping up rare earth magnet production.

This move aligns with recent policy announcements. On July 23, 2024, Finance Minister Nirmala Sitharaman announced the launch of the Critical Mineral Mission during the Union Budget 2024–25. The Union Cabinet followed this by approving the National Critical Mineral Mission (NCMM) in January 2025 with a total outlay of Rs 16,300 crore and an expected investment of Rs 18,000 crore from Public Sector Undertakings.