Magnetizing "Make in India": Mahindra, Uno Minda Eye Rare Earth Production

Mahindra & Mahindra and auto component manufacturer Uno Minda are exploring domestic production of rare earth magnets to reduce reliance on China, following Beijing’s recent export restrictions.

Mahindra, which has recently launched two electric SUVs, is reportedly open to forming partnerships or entering long-term supply agreements with local magnet manufacturers. Uno Minda also indicated its interest in domestic magnet production during a meeting with the Ministry of Heavy Industries in June. Meanwhile, Maruti Suzuki has raised concerns over potential production delays due to ongoing magnet supply disruptions.

Although India holds the world’s fifth-largest reserves of rare earth elements, mining operations are currently monopolized by the state-run Indian Rare Earths Limited (IREL). Private players such as JSW Steel have shown interest in entering the mining space, but development is expected to take years.

China, which accounts for 90% of global rare earth magnet supply, halted exports in April. While shipments to the U.S. and Europe have since resumed, Indian manufacturers are still awaiting export clearances. In response, the Indian government is evaluating the creation of strategic stockpiles and considering production-linked incentives (PLIs) to encourage domestic manufacturing.

News by Rahul Yelligetti.