Made in India Drive with Mahindra & Minda: India Gears Up for Rare Earth Magnet Production

Made in India Drive with Mahindra & Minda: Following China’s export restrictions on rare earth magnets, concerns have risen across India. China, which accounts for nearly 90% of global rare earth magnet production, imposed a ban on their export in April. While some supply has resumed to the U.S. and Europe, Indian companies are still awaiting Beijing’s clearance.

This supply disruption has prompted the Indian government to accelerate efforts to develop domestic rare earth magnet manufacturing capabilities. Under the leadership of Prime Minister Narendra Modi, the government is planning to create stockpiles and offer incentives to magnet manufacturing companies to boost domestic production.

Auto Push: Mahindra, Minda, and Maruti Focus on Local Manufacturing

According to government sources, auto giants like Mahindra & Mahindra have shown interest in rare earth magnet production within India. Mahindra, which recently launched two electric SUVs, requires a significant quantity of these magnets. The company has indicated that local manufacturing is cost-effective, and it is open to either partnering with a domestic firm or entering a long-term supply agreement.

Similarly, auto component manufacturer Uno Minda expressed its interest in producing rare earth magnets during a meeting with the Ministry of Heavy Industries in June. Uno Minda supplies parts to leading companies like Maruti Suzuki.

Maruti has already warned of production delays due to import disruptions from China. Meanwhile, Sona Comstar, a supplier of motors and gears to companies like Ford and Stellantis, is also among the first movers considering local magnet production.

However, none of these companies have made a final decision yet. Their plans will depend on the incentives offered by the government and the availability of raw materials.

Mineral Hunt: Raw Material Availability and Global Strategy

India has the fifth-largest reserve of rare earth minerals in the world. But the challenge lies not in the deposits themselves but in the extraction process (mining). Currently, the mining of rare earth elements in India is controlled by the state-owned firm IREL (India Rare Earths Limited), which produced around 2,900 tonnes of rare earth ore in 2024.

These minerals are primarily used in the nuclear and defense sectors, and a portion is exported to Japan. However, after China’s export ban, IREL has decided to halt exports and focus on boosting domestic processing.

Simultaneously, the government is forging strategic partnerships with other nations to secure alternative sources of raw materials. In December last year, an IREL team visited Myanmar to study its rare earth resources. The Indian government is also exploring critical mineral mining collaborations with five Central Asian countries.

Future Ready: JSW Steel Shows Interest

Metal industry giant JSW Steel has also expressed interest in rare earth mineral mining in India. However, this would not be possible without government approval. Experts point out that mining is a more time-consuming and complex process than magnet manufacturing, and hence it may take longer to initiate.

India’s dependency on China for rare earth magnets has emerged as a major challenge for its automobile and EV industries. But now, industry leaders like Mahindra, Uno Minda, Maruti, and JSW Steel are seriously considering domestic production and mining to reduce this reliance.

With government policy support, international partnerships, and resource exploration, India is taking a strong and strategic step towards becoming self-reliant in the rare earth magnet space.