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Magnet crunch: Indian firms pitch supply chain plans to curb China’s rare earth dominance

Economic Times

Economic Times · 2m ago

Magnet crunch: Indian firms pitch supply chain plans to curb China’s rare earth dominance

Facing a rare earth magnet supply crunch due to China's export restrictions, Indian companies are proposing in-house magnet supply chains to the government. Midwest Advanced Materials and Entellus plan to produce locally, while Indian Rare Earths aims to match China's pricing. Dependence on Chinese imports has hindered past domestic magnet production. The government is considering a ₹3,500–5,000 crore incentive scheme to boost local production and reduce reliance on China for critical components.

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It’s rare, it’s revered, it’s relevant: What’s the big deal about rare earths? - The Economic Times

Economic Times

Economic Times · 1m ago

It’s rare, it’s revered, it’s relevant: What’s the big deal about rare earths? - The Economic Times

Rare earth elements (REEs) are vital to manufacturing electronic products due to their unique properties. China dominates the global supply chain, controlling mining and over 90% of processing and magnet production capacity. This dominance gives China significant leverage, potentially leading to supply chain disruptions for countries like India. The article by ET's Suraksha P delves into the complexities of the rare earth supply chain and its critical importance to India's manufacturing success.

China drought of rare earths to India in focus for Xi-Modi meet

Economic Times

Economic Times · 3h ago

China drought of rare earths to India in focus for Xi-Modi meet

Prime Minister Narendra Modi and President Xi Jinping's upcoming meeting aims to resolve India's heavy rare earth magnet supply issues from China. Despite improved bilateral relations, Indian automakers still face shortages amid China's export curbs initiated during a trade clash with the US. While lighter rare-earth magnet shipments to India surged, heavy magnet approvals await. Automakers are seeking local production alternatives, but challenges remain, underscoring China's dominance in critical mineral supplies impacting electric vehicles and defense sectors.

Magnets, chips & a tech tug-of-war - The Economic Times

Economic Times

Economic Times · 2m ago

Magnets, chips & a tech tug-of-war - The Economic Times

Indian automakers are negotiating with China for stable rare earth magnet supplies after China's export controls affected production. These controls respond to U.S. limits on AI chips, affecting global trade talks. While the U.S.-China trade truce temporarily eased tensions, India aims to secure better terms with both nations by distinguishing between strategic and commercial interests. China’s restrictions on rare earths are seen as tactical to maintain its tech edge, but nations like India are pushing for reliable supply chains.

TVS tops electric 2W sales, Ather switches gear to race past Ola Electric - The Economic Times

Economic Times

Economic Times · 1d ago

TVS tops electric 2W sales, Ather switches gear to race past Ola Electric - The Economic Times

TVS Motor maintained its lead in August's electric two-wheeler sales, with a 24.8% market share, despite rare earth magnet shortages affecting production. Ather Energy surpassed Ola Electric, claiming second place with a 17.9% share. Meanwhile, Bajaj Auto, impacted by supply constraints, dropped to fifth place. Ola Electric faced challenges, including market share loss and quality concerns, but received PLI certification for its scooters, aiding profitability efforts. The rare earth magnet supply issues are expected to stabilize soon.

Rare earth, rarer nod: Indian firms’ magnet waitlist doubles in 2 weeks, sends industry into supply tailspin

Economic Times

Economic Times · 2m ago

Rare earth, rarer nod: Indian firms’ magnet waitlist doubles in 2 weeks, sends industry into supply tailspin

Twenty-one Indian companies, including Bosch India and TVS Motor, are awaiting licenses from China's commerce ministry to procure rare earth magnets. The number has nearly doubled in two weeks due to procedural hurdles following China’s requirement for an end-user certificate. Without these licenses, the Indian automobile industry faces potential supply disruptions, as their magnet stock could run out soon. Indian authorities are attempting diplomatic interventions to expedite the process.

Magnet squeeze halves Bajaj EV output in July; company targets six-month fix

YourStory

YourStory · 21d ago

Magnet squeeze halves Bajaj EV output in July; company targets six-month fix

Bajaj Auto faces a 50% reduction in electric vehicle production due to a shortage of high-rare-earth magnets, stemming from China’s export curbs. The company is implementing three initiatives to address the issue, including sourcing low-rare-earth magnets and collaborating with authorities. Despite expected shipment reductions, Bajaj predicts manageable cost impacts. Full production restoration is targeted by the end of the quarter, with complete supply chain de-risking taking six to nine months. Other automakers, like Maruti Suzuki and Ather Energy, also face production challenges.

Auto cos seek PLI relaxations amid rare earths supply disruption

Economic Times

Economic Times · 2m ago

Auto cos seek PLI relaxations amid rare earths supply disruption

The Indian auto industry is urging the government to relax domestic value addition norms under the production-linked incentive scheme due to supply chain disruptions from China's restrictions on rare earth magnet shipments. Top manufacturers, including Maruti Suzuki and Tata Motors, request permission to import complete component assemblies from China temporarily to maintain production schedules. The industry relies on existing inventory amidst these challenges and highlights the necessity of relaxed import regulations for continued operations.

Magnets in limbo: No rare earth nod yet from China for Indian auto suppliers

Economic Times

Economic Times · 2m ago

Magnets in limbo: No rare earth nod yet from China for Indian auto suppliers

Indian auto manufacturers have yet to receive Chinese government approval to procure rare earth magnets, crucial for manufacturing components like speedometers and electric motors. Despite interventions from Indian officials and leading industry bodies, there is no clarity on when approval might be granted. The delay affects production schedules and has prompted Indian companies to explore local magnet production, although challenges persist. The situation is exacerbated by strained India-China relations and China’s export restrictions.

Tata Motors says no panic yet over rare earth supply

Economic Times

Economic Times · 2m ago

Tata Motors says no panic yet over rare earth supply

Tata Motors is exploring alternative sources for rare earth magnets amid China's export restrictions but reports no immediate production disruptions. Tata's CFO, PB Balaji, assured no current panic or curtailment in production. Meanwhile, Maruti Suzuki reduced its electric e-Vitara production due to rare earth shortages. The Indian government is considering subsidies to boost domestic rare earth magnet production to mitigate the impact of China's tightening export policies and reduce import dependency.

Attero to invest Rs 100 crore to scale up rare earth recycling capacity to 30,000 tonnes

Economic Times

Economic Times · 2m ago

Attero to invest Rs 100 crore to scale up rare earth recycling capacity to 30,000 tonnes

Attero, an e-waste recycling company, plans a Rs 100 crore investment to increase its rare earth recycling capacity from 300 to 30,000 tonnes over two years. This move aligns with the National Critical Mineral Mission to reduce reliance on imports. Attero's patented technology enables efficient extraction of rare earth elements with high purity. The global rare earth market is expected to grow significantly, reinforcing the need for domestic infrastructure to counter China's dominance.

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