India Rare Earth Magnet Market 2025-2033
India Rare Earth Magnet Market to Reach ~USD 993 Million by 2033, Driven by EV Adoption, Renewable Energy, and Localization Push
Phoenix Research Forecasts ~5.1% CAGR Through 2025–2033 Amid Strategic Autonomy and Supply Chain Diversification
– September 30, 2025 – Phoenix Research, a leader in AI-powered market intelligence, has published its latest report: “India Rare Earth Magnet Market: Building Self-Reliance Across EVs, Clean Energy, and Strategic Industries (2025–2033).” The study projects that the India rare earth magnet market will expand from ~USD 670 million in 2025 to nearly USD 993 million by 2033, reflecting a CAGR of ~5.1%.
According to Phoenix analysts, demand is accelerating as India strengthens its domestic manufacturing ecosystem for neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) magnets—critical inputs for EV motors, wind turbines, defense, and electronics. With growing risks from import dependence and export restrictions by global suppliers, the market is entering a decisive phase of localization and strategic investment.
“Rare earth magnets are no longer just industrial components—they are the backbone of India’s EV transition, renewable energy ambitions, and defense preparedness,” said Rachna Patni, Senior Analyst at Phoenix Research. “The next decade will see India fast-track investments in local production, recycling, and supply chain resilience to reduce import reliance.”
Key Insights from the Report
EV & Renewable Energy Growth
Electric motors for EVs and generators for wind turbines account for the largest share of future magnet demand.
Government Policy & Incentives
Production-linked incentive (PLI) schemes, rare earth material processing initiatives, and localization mandates are catalyzing domestic magnet production.
Supply Chain Risk
Export restrictions by China and supply disruptions highlight India’s vulnerability, making local processing and recycling initiatives crucial.
Industrial & Electronics Growth
Consumer electronics, appliances, robotics, and automation are expanding permanent magnet applications across industries.
Sustainability & Recycling
Emerging focus on rare earth recycling and efficient magnet design reduces material dependency and enhances sustainability.
Regional Market Highlights
- Domestic (All-India)— Rising consumption in automotive and electronics clusters (Maharashtra, Tamil Nadu, Karnataka, Gujarat).
- Strategic Mining States— Odisha, Andhra Pradesh, and Kerala play key roles in rare earth oxide production and processing capacity.
- Export vs. Domestic Use— India is shifting toward retaining raw rare earth materials for domestic value addition.
Leading Companies
- IREL (India Rare Earths Ltd.)– Expanding extraction and processing capacity.
- TRAFALGAR Group– Building a magnet plant in Gujarat.
- Mahindra & Mahindra– Exploring localized magnet manufacturing for EVs.
- Uno Minda & Sona Comstar– Strengthening domestic auto-component magnet supply chains.
Phoenix’s AI Toolkit in Action
- Demand Forecast Engine– Projects CAGR of ~5.1% from 2025–2033.
- Supply Chain Risk Analyzer– Tracks global export restrictions and alternative sourcing scenarios.
- Policy Sentiment Tracker– Identifies momentum from Indian government’s Make in India and strategic autonomy initiatives.
- Innovation Scanner– Monitors adoption of recycling, NdFeB efficiency improvements, and magnet design optimization.
Forecast Snapshot: 2025–2033
| Metric | Value |
| 2025 Market Size | ~USD 670 Million |
| 2033 Market Size | ~USD 993 Million |
| CAGR (2025–2033) | ~5.1% |
| Largest Application Segment | EVs & Renewable Energy |
| Key Trend | Localization & Recycling |
| Future Focus | Magnet manufacturing capacity, rare earth oxide processing, strategic autonomy |
Why the Market is Mission-Critical
- EV & Renewable Energy Transition– Critical to India’s net-zero and electrification roadmap.
- Strategic Autonomy– Reducing import reliance ensures resilience against global supply shocks.
- Defense & Aerospace– Permanent magnets are vital for radar, missiles, and aerospace systems.
- Industrial Competitiveness– Local production drives job creation and boosts manufacturing GDP contribution.
Final Takeaway
The India Rare Earth Magnet Market is poised for steady expansion, underpinned by EV adoption, clean energy deployment, and government-backed localization strategies. Companies that invest in magnet production infrastructure, upstream rare earth oxide processing, and recycling innovation will be best positioned to capture growth.
With incentives, strategic policies, and rising end-user demand converging, India is set to transform from a net importer to an integrated rare earth magnet manufacturing hub by 2033.
About Phoenix Research
Phoenix Research is a cutting-edge market intelligence and consulting firm leveraging proprietary AI tools to deliver forward-looking insights across technology, healthcare, consumer, industrials, and strategic sectors. Through advanced analytics, real-time data tracking, and deep domain expertise, Phoenix empowers global organizations to make proactive, data-driven decisions in dynamic markets.
To get the entire report pleaseuse the below link