Alloy is crushed to powder, pressed in a magnetic field, sintered in vacuum furnaces, machined, coated and magnetised. This is what the ₹7,280 Cr scheme pays for.
Canadian rare-earth magnet and materials group that bid through its Singapore unit
Strengths
Runs rare-earth separation and magnet operations outside China, including a new sintered-magnet plant in Estonia
Risks
Listed in Toronto, not in India - no Indian-listed exposure
Would likely need an Indian partner for oxide and approvals
Background
Bid via NEO Performance Materials (Singapore) Pte Ltd (PIB bidder list, 13 Aug 2026)
Listed on the Toronto Stock Exchange, not in India
Compiled from public reporting — not exchange-listed.
Where it fits
Integrated makers take NdPr oxide, reduce it to metal, make alloy and turn it into finished sintered NdFeB magnets. The scheme only rewards magnets made from oxide in India - an importer that just grinds and presses foreign alloy does not qualify.
Why it matters
The scheme (Cabinet approval 26 Nov 2025, notified 15 Dec 2025) splits 6,000 tonnes a year among up to five winners, each 600-1,200 tonnes, picked by the lowest quoted incentive per kg. Winners get a sales-linked incentive of at most ₹2,150 per kg (and at most 40% of sales) for five years after a two-year build, plus a capital subsidy of 15% of investment (capped at ₹75-150 Cr). The three lowest bidders also get 500 tonnes a year of NdPr oxide from IREL between them. 20 bids were opened on 13 Aug 2026; no winner had been named by 20 Oct 2026.
Where the value pool sits
Total incentive: ₹6,450 Cr over five years, up to ₹1,290 Cr for a 1,200-tonne winner (₹645 Cr at 600 tonnes). That is meaningful for a small-cap like 20 Microns, but a rounding error for L&T or Coal India. Economics after the incentive depend on whether Indian magnets can match Chinese prices.
Key drivers
Sales-linked incentive of up to ₹2,150/kg for five years
Buyers paying a premium for non-China supply after the 2025 shortages
Budget 2026-27 Rare Earth Corridors and NCMM support upstream
Potential bottlenecks
Oxide supply: IREL's 500 tonnes a year of NdPr oxide (200/167/133 t to the three lowest bidders) supports only about 1,500 tonnes of magnets; the other two winners must find their own
Know-how: few bidders have made sintered magnets before; most need foreign technology partners
Equipment (jet mills, sintering furnaces, strip casters) is largely imported