Domestic automobile companies are preparing for a life without rare earth magnets (REM), whose availability has become a major cause of concern in recent weeks, to protect the growing local electric vehicle market from supply shocks, a report by Business Standard said on June 12.
Most passenger and commercial vehicle makers are now planning to launch REM-free vehicles by FY27, the report said citing top industry sources, adding that the companies feel the change is essential for the sector’s growth.
Several original equipment manufacturers and parts makers have been developing tech solutions to cut the requirement for REMs, BS said. The efforts picked up pace after China, in a retaliatory move, announced restriction on its rare earth exports due to the imposition of tariffs by the US.
However, some relief was likely as the US and China negotiated a deal that would see Beijing lift curbs on the exports of REMs.
Rare earths have been at the center of the debilitating trade war between the US and China, with Beijing leveraging its control of the sector to push back against the Trump administration given that local producers account for about 70% of global supply. High-level talks between Beijing and Washington in London this week saw the sides agree a plan to revive the flow of sensitive goods.
The commodities have an array of critical applications, making them vital for the auto industry, turbine makers, as well as some niche defence needs.
With agency inputs
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