As countries seek to secure supply chains for EVs, RE and advanced manufacturing, access to rare earth materials is becoming a source of economic and geopolitical advantage. Demand for rare earth permanent magnets (REPMs) in India is expected to grow from 4,900 MT in 2025 to 12,500 MT by 2030, CAGR of 21%.
This surge will be driven primarily by EV motors, room ACs and wind turbines. Electric 4-wheelers and 2-wheelers require around 2 kg and 0.5 kg of magnets, respectively, for their traction motors. EV penetration is expected to rise from 6% in 2025 to 30% by 2030 for 2-wheelers, and from 3% to 15% for 4-wheelers. Magnet demand from these two segments alone is projected to increase from less than 1,000 MT today to about 3,500 MT by 2030, making them the largest drivers of future demand.
