India's Magnet Imports Plummet 56% Amid Supply Chain Shakeup

Imports of permanent magnets, essential for electric vehicle motors and other automotive components, saw a sharp 56% decline during the April to September period compared to the previous year. This marks the most substantial six-month decrease in imports in seven years, signaling a significant pivot in the industry's supply chain strategy. Automobile manufacturers are increasingly adopting light rare-earth magnets and even exploring non-rare earth alternatives to mitigate reliance on China.

This shift is driven by the desire to de-risk supply chains, a lesson learned from recent global shortages. Companies are actively researching and implementing new motor designs that utilize lighter rare earths or ferrite-based technologies. Some manufacturers, like Bajaj Auto, have already integrated these alternatives, while others, such as Sona Comstar, have developed motors completely free of rare-earth magnets, suitable for various vehicle types.

To further support this transition, the Indian government is expected to approve a substantial ₹7,300 crore scheme for domestic rare earth magnet manufacturing. While these efforts are underway, India's immediate dependence on Chinese rare-earth magnets remains considerable, highlighting the ongoing challenge of diversifying global supply chains.