L&T Eyes Rare-Earth Magnet Manufacturing to Reduce India’s Dependence on China

Larsen & Toubro (L&T) is evaluating an entry into India’s rare-earth permanent magnet manufacturing sector by preparing to bid for the Government of India’s ₹7,280 crore (US$764 million) incentive programme aimed at creating domestic production capacity and reducing dependence on imports. If the plan moves forward, L&T would need to partner with a technology provider with specialised expertise in high-precision magnet manufacturing. The government programme has already attracted 15 bids, including a consortium involving Japan-based Proterial Ltd. and two Indian automobile manufacturers. Rare-earth magnets are critical components for electric vehicle motors, wind turbines, industrial robots and several electronic applications, making them strategically important for India’s manufacturing and clean-energy ecosystem. For L&T, the potential move could diversify its business beyond construction, heavy engineering and industrial projects while complementing its plans to develop next-generation EV traction motors in India through its partnership with Israel-based EVR Motors. China currently accounts for around 90% of global rare-earth magnet production, highlighting the strategic importance of developing alternative supply chains. From an industry perspective, L&T’s potential entry could create opportunities in advanced manufacturing and electric mobility, although the outcome will depend on the bidding process, technology partnership and eventual execution. Overall, the move reflects L&T’s interest in emerging technology-led businesses while aligning with India’s broader objective of building domestic capabilities in critical industrial components. $LT Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.