India's rare earth magnet push dogged by China competition concerns

Firms question drive for small end-to-end plants over large-scale specialization

A 3D rendering of a rare earth magnet production facility being developed by N.A.N. MagneTech in Naidupeta Industrial Park in the Indian state of Andhra Pradesh. © N.A.N. MagneTech

BENGALURU -- India's 72.8 billion rupee ($764.8 million) initiative to create a rare-earth magnet industry has attracted a rush of bidders, both domestic and international. But companies seeking the incentives are questioning whether New Delhi's preference for smaller, vertically integrated plants backed with time-limited subsidies can produce players that can go head-to-head with global rivals.