Larsen & Toubro Bids for India Rare-Earth Magnet Program

Larsen & Toubro Ltd. plans to bid for a 72.8-billion-rupee ($764 million) incentive program established by the Government of India to manufacture rare-earth magnets domestically. The initiative seeks to loosen China's global dominance over the critical industrial component, which China currently controls 90% of globally.

The seven-year government program offers capital subsidies and sales-linked incentives to establish an annual domestic capacity of 6,000 metric tons. To enter this high-precision engineering sector, the company will require a technology partner. This move aligns with existing efforts by the firm to build electric vehicle traction motors locally through a partnership with Israel-based EVR Motors.

To date, the program has attracted 15 bids. These include a submission from a consortium involving two Indian automakers and a Japanese firm.