Larsen & Toubro (L&T) is preparing a bid to enter India’s rare-earth permanent magnet manufacturing sector, people familiar with the matter say, as the company looks to reduce reliance on imported magnets and lessen dependence on China.
The bid is linked to a government incentive programme worth ₹7,280 crore aimed at building domestic production of rare-earth permanent magnets. Bloomberg reports L&T plans to manufacture the magnets in India and highlights broader efforts to loosen China’s dominance in a critical industrial input. The Free Press Journal adds that L&T would likely need a technology partner with expertise in high-precision magnet manufacturing before starting production.
Both outlets situate the move within a wider policy push to diversify supply chains after China’s restrictive export stance. They also note the magnets’ strategic relevance across industries, including electric vehicles, wind energy and industrial robotics, where permanent magnets are used in traction motors and related components. The Free Press Journal further points to the government’s programme structure and application pipeline, while Bloomberg focuses more on the company’s stated intent and the China-reliance context.
