Hyundai Motor India on Wednesday said the company is not facing any production issues due to the shortage of rare earth magnets. Replying to a query in the company's earnings conference call, Hyundai Motor India head of investor relations K S Hariharan noted that the company is maintaining an adequate inventory of the rare earth magnets.
'Despite assurance from China, none of the companies have received supplies from Chinese sellers.'
Mahindra & Mahindra plans to manage rare earth magnet supplies through alternative sourcing channels for the next nine months and will pursue 'engineering efforts' to address the raw material shortage situation amid growing product portfolio, according to a senior company executive. The imposition of export restrictions by China on key rare earth magnets has resulted in supply chain bottlenecks, impacting the user industries, including the auto and electronics sectors.
The 17 rare earth elements that are at the centre of the current crisis are critical components of everyday products -- from cars to jet engines to electronics like smartphones and flat-screen TVs.
The country's largest carmaker Maruti Suzuki India is recalibrating production of its upcoming model e-Vitara due to the shortage of rare earth magnets, industry sources said. The auto major is looking to produce around 8,000 units of the model by September as against the earlier stated plan of rolling out over 26,000 units during the period.
Since April 4, around 35 importers in India have either not received any shipment of the magnets or have not been granted the import licences by China.
Maruti Suzuki India (MSIL) said on Thursday its operations are unaffected by the global rare earth magnet shortage, but added that the situation is "uncertain and evolving". The firm said it is exploring multiple solutions to maintain continuity in operations and will notify stakeholders in case of material impact.
The government on Wednesday approved a Rs 7,280 crore scheme to promote manufacturing of rare earth permanent magnets, a move which would help reduce India's dependence on China.
The government plans to establish a fully indigenous manufacturing ecosystem with an annual production capacity of up to 6,000 tonnes. The scheme is expected to run for seven years, according to official documents.
The Centre has notified the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) with an outlay of Rs 7,280 crore. The initiative is targeting to reduce dependence on China for critical inputs and secure supply chains for EVs, electronics, aerospace and green energy.
Hyderabad-based Nexon Geochem has partnered with Russia's Giredmet to establish integrated rare-earth processing and downstream facilities in India. This collaboration aims to bridge critical gaps in India's rare earth value chain, focusing on producing NdFeB permanent magnets essential for electric vehicles, wind turbines, and defence systems, reducing reliance on imports.
A new study reveals that despite China's significant control over global rare earth mining and processing, its dominance has a critical weakness: the US and Japan hold the majority of core patents for advanced rare earth functional material technologies. This technological gap means China lags in higher-value applications, impacting its strategic advantage in the industry.
Inventories of rare earth magnets used in critical automotive components - particularly electric vehicle (EV) traction motors and power steering systems - could run dry by mid-July this year, according to rating agency Icra.
Electric two-wheeler (e2W) companies are upset with some of their suppliers of heavy rare-earth magnet-powered electric motors, who have objected to their proposal - under consideration by the government - that would allow e2W original equipment manufacturers (OEMs) an exemption from localisation norms on electric motors, thereby enabling them to continue receiving the 5,000-per-vehicle subsidy.V
China accounts for about 70 per cent of global rare earth mining and nearly 90 per cent of rare earth magnet production, making it a dominant player and giving it significant leverage in global supply chains.
Andhra Pradesh is spearheading an ambitious initiative to establish a fully integrated beach sand minerals, rare earth, and titanium ecosystem, aiming to attract over 50,000 crore in investments over the next decade. This move is part of India's broader strategy to reduce its reliance on China for strategic minerals and permanent magnets, with the state preparing a comprehensive rare earth policy and planning specialised industrial clusters.
The automobile industry has sought government support in expediting approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars. As per the industry sources, various domestic suppliers have already sought approval from the Chinese government through their local vendors in China.
'We remain in touch with the Chinese side, in Beijing as well as in Delhi, to bring predictability in the supply chain.'
India must act decisively to fully leverage the vast opportunities that exist in India for developing the entire rare earth magnet ecosystem, SIAM president Shailesh Chandra said on Thursday. The government is considering incentives for the production of rare earth minerals and magnets in response to China's restrictions on its global supply, which have disrupted the supply chain.
The new Index of Industrial Production (IIP) series, which shifts the base year from 2011-12 to 2022-23 and is scheduled for release on June 1, will, for the first time, track rare earths and minor minerals, piped natural gas (PNG), and water supply, sewerage and waste management.
Dysprosium and terbium, two heavy rare earth elements with unique properties, are not available in extractable quantities in India.
Major foreign mining and refining companies have assured the Indian government that they will have sufficient stocks of rare-earth oxides to supply to the winning bidders under the country's production-linked incentive (PLI) scheme for indigenous manufacturing of rare-earth permanent magnets (REPMs), Business Standard has learnt.
Electric commercial vehicle manufacturers in India are struggling to meet localisation requirements under the PM eDRIVE scheme, set to begin on Tuesday. The Society of Indian Automobile Manufacturers (Siam) has requested a seven-month extension until April 1, 2027, citing disruptions in the supply of rare earth magnets due to China's export restrictions and geopolitical tensions. The government is yet to decide on the request, which aims to prevent production disruptions and allow time for local supply chain development.
Western Coalfields Limited (WCL) has discovered significant concentrations of rare earth elements and critical minerals in its mines in Maharashtra, potentially transforming waste material into revenue-generating resources and diversifying the company's business.
Hyderabad-based Midwest Ltd has become the first Indian private company to secure overseas critical mineral mines, sealing a deal with Indonesia's state-run PT Perusahaan Mineral Nasional (PERMINAS) to ensure a long-term supply of rare earths.
'The reported deal between the European Union and China should mitigate it (shortage) for the medium to long term. Let's wait and watch how this plays out.'
'The government is actively engaging with EU to ensure that concerns of Indian companies and hard-to-abate sectors are adequately addressed under CBAM'
Following the disruption in the supply of rare earth or permanent magnets after China's notification on April 4, the mines ministry is planning to introduce a Rs 1,500 crore incentive scheme to recycle critical minerals, according to a top official.
The Ministry of Heavy Industries (MHI) anticipates disbursing approximately 4,700 crore in incentives under the automotive PLI scheme in FY27, more than double the previous two years, while also exploring financing mechanisms for electric buses and trucks and promoting domestic manufacturing of critical EV components.
Prime Minister Narendra Modi and Indonesian President Prabowo Subianto have significantly advanced the India-Indonesia Comprehensive Strategic Partnership, securing crucial agreements on defence, critical minerals, and maritime security, including BrahMos missile supply and Sabang port development.
Tata Motors is hoping to beat its target year of 2030 and have 30 per cent of its portfolio comprising electric vehicles (EVs), according to Chairman N Chandrasekaran, who was speaking at the company's last annual general meeting (AGM) ahead if its demerger.
'It's a changing world and the opening up doesn't mean that concerns with regards to security have gone away.'
Escalating geopolitical tensions in West Asia are beginning to disrupt India's automotive supply chain, leading to rising commodity prices, logistics bottlenecks, material shortages, and pressure on consumer demand, with two-wheeler makers already raising prices.
Larsen & Toubro (L&T) is investing Rs 5,000 crore over five years to enter the automotive components sector, focusing on electric vehicle (EV) motors, safety systems, and connected-vehicle technologies, aiming to become a Tier-I auto supplier.
Ola Electric could gain market share in the near term with relatively less disruption expected due to rare earth magnets shortage, according to a report by Goldman Sachs. The company has successfully developed heavy rare earths (HRE) free motors which are scheduled for production deployment in Q3 FY26.
Metals and mining conglomerate Vedanta aims to achieve $10 billion in group Ebitda by FY27, a significant increase from $6 billion in FY26, and plans to reduce its overall debt by more than 20,000 crore during the same period, according to CFO Ajay Goel.
Maruti Suzuki sold more cars than ever before, earned more money, and saw many first-time buyers choosing small cars again.
India may see its busiest EV festive season in 2025 with SUVs, luxury cars and scooters set to launch, but rare-earth supply bottlenecks risk delaying rollouts.
The Indian government has issued an updated Standard Operating Procedure (SOP) for processing Foreign Direct Investment (FDI) applications, aiming to clear all proposals within 12 weeks, a two-week extension from the previous 10-week target, to ensure a fully paperless and transparent process.
Spreading risks in sourcing raw materials for electric vehicle (EV) manufacturing is "very critical" and the government can play a key role by enabling access to these from multiple locations worldwide, said Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility, on Friday while stressing the need for faster localisation, especially of batteries.
