L&T Preparing Bid for ₹7,280 Crore Government Scheme to Manufacture Rare-Earth Magnets in India
Larsen & Toubro Ltd. plans to manufacture rare-earth magnets in India, as the engineering conglomerate looks to participate in a government push to reduce reliance on imports and loosen China's dominance over the critical industrial component, according to people familiar with the matter. The conglomerate is preparing a bid for the government's ₹7,280 crore ($764 million) incentive policy for such magnets.
L&T will need to secure a technology partner with the necessary expertise for its foray into a sector known for high-precision engineering. The program has received 15 bids so far, including one from a consortium comprising Japan's Proterial Ltd. and two Indian automakers.
L&T's bid to manufacture rare-earth magnets would also support its own plan to build next-generation electric vehicle traction motors locally, an initiative for which it has partnered with Israel-based EVR Motors. The company's EPS Mobility unit recently secured its maiden commercial order to supply 500,000 such motors to a two-wheeler manufacturer over three years.
The government scheme aims to create 6,000 MTPA of integrated Rare Earth Permanent Magnet (REPM) manufacturing capacity in India, with capacity intended to be allocated among up to five beneficiaries. The scheme, approved by the Cabinet, will support the creation of integrated manufacturing facilities covering the conversion of rare earth oxides to metals, metals to alloys, and alloys to finished permanent magnets.