Vedanta & Hindustan Zinc Eye Rare Earth Magnet Opportunity

Key Developments • Government launched ₹7,280 crore REPM scheme for rare earth magnet manufacturing • Structure includes: – ₹6,450 Cr sales-linked incentives (5 years) – ₹750 Cr capital subsidy • Up to 5 players to be selected (600–1,200 MTPA each) • Bids close May 28, 2026 Strategic Advantage • Top 3 bidders to receive assured NdPr oxide supply from IREL India • India currently imports 60–90% of REPM demand, mainly from China Why It Matters • REPMs are critical for EVs, wind energy, defence, and electronics • Demand expected to double by 2030 • Companies like Vedanta (via Runaya) and Hindustan Zinc are positioning early in this high-growth, strategic segment Learning Outcome Government incentive schemes in critical sectors can create new growth opportunities. Investors should track early movers, capacity build-up, and raw material access advantages.