Lohum’s Rs 500-crore rare earth magnet plant gets approval under ECMS scheme
Noida-based start-up expected to receive 25% of capex subsidy
- Mar 31, 2026,
- Updated Mar 31, 2026 2:49 PM IST
Battery recycling and critical minerals startup Lohum Cleantech’s Rs 500 crore Rare Earth Element (REE) magnet production facility in Uttar Pradesh has received approval under the Electronics Components Manufacturing Scheme (ECMS).
The Noida-based start-up is expected to receive 25% of capex subsidy under the ECMS scheme, a company executive told BT.
The plant, with a production capacity of 2,000 metric tonnes, is a step toward building India’s self-reliance in rare earth magnets and critical minerals.
The facility will refine and produce both light and heavy rare earth elements, key for advanced technology, electric mobility, renewable energy, aerospace, defence, electronics, and more.
India’s demand for rare earth magnets has grown to 4,000 tonnes in 2025 and is projected to reach 15,000 tonnes by 2030, according to industry estimates. Despite holding 7% of the world’s resources, India still imports more than 90% of its rare earth magnets, primarily from China, which dominates the global supply chain. In April 2025, China imposed curbs on exports of critical minerals to India, forcing several automakers to look for alternatives.
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Once fully operational, Lohum's facility is projected to meet up to 20% of India’s rare earth magnet demand by 2027.
“This facility addresses a critical gap in India’s manufacturing value chain,” Rajat Verma, Founder and CEO of Lohum, said in November 2025. “Rare earth elements are foundational to our nation’s clean energy ambitions and strategic industries. By establishing domestic production capabilities, we’re not only reducing import dependence but creating a resilient, sustainable supply chain that will support India’s growth for decades to come.”
Battery recycling and critical minerals startup Lohum Cleantech’s Rs 500 crore Rare Earth Element (REE) magnet production facility in Uttar Pradesh has received approval under the Electronics Components Manufacturing Scheme (ECMS).
The Noida-based start-up is expected to receive 25% of capex subsidy under the ECMS scheme, a company executive told BT.
The plant, with a production capacity of 2,000 metric tonnes, is a step toward building India’s self-reliance in rare earth magnets and critical minerals.
The facility will refine and produce both light and heavy rare earth elements, key for advanced technology, electric mobility, renewable energy, aerospace, defence, electronics, and more.
India’s demand for rare earth magnets has grown to 4,000 tonnes in 2025 and is projected to reach 15,000 tonnes by 2030, according to industry estimates. Despite holding 7% of the world’s resources, India still imports more than 90% of its rare earth magnets, primarily from China, which dominates the global supply chain. In April 2025, China imposed curbs on exports of critical minerals to India, forcing several automakers to look for alternatives.
MUST READ: April 1 tax reset: Old Tax Regime back in focus vs New Tax Regime — which option saves more now?
Once fully operational, Lohum's facility is projected to meet up to 20% of India’s rare earth magnet demand by 2027.
“This facility addresses a critical gap in India’s manufacturing value chain,” Rajat Verma, Founder and CEO of Lohum, said in November 2025. “Rare earth elements are foundational to our nation’s clean energy ambitions and strategic industries. By establishing domestic production capabilities, we’re not only reducing import dependence but creating a resilient, sustainable supply chain that will support India’s growth for decades to come.”