China’s decision earlier this year to tighten export permits for seven rare-earth elements and the magnets made from them has rattled global supply chains, threatening production in sectors ranging from electric vehicles to defence hardware. Automakers in the United States, Europe and India have reported parts shortages, underscoring Beijing’s leverage in a market it dominates. New Delhi is moving to curb that dependence. Heavy Industries Minister H.D. Kumaraswamy said the government has drafted a Rs 1,345 crore (about $160 million) incentive programme to support domestic production of rare-earth magnets. Secretary Kamran Rizvi added that the proposal is undergoing inter-ministerial review and would subsidise the conversion of locally mined oxides into finished magnets. Indian manufacturers are already positioning for the scheme. Mahindra & Mahindra, Uno Minda and drivetrain maker Sona Comstar have signalled interest in building magnet plants, according to officials briefed on the talks. India, which imported more than 80 per cent of the 540 tonnes of magnets it used last fiscal year, holds an estimated 6.9 million tonnes of rare-earth reserves and wants to channel that resource into domestic supply chains. Washington is pursuing a parallel strategy. The U.S. Department of Defense this week agreed to pay $400 million for a 15 per cent stake in MP Materials, operator of the Mountain Pass mine in California. The agreement obliges the company to expand processing and build a new factory that will lift U.S. magnet output to about 10,000 tonnes a year by 2028, cutting reliance on Chinese feedstock.