Mahindra & Mahindra (M&M), a top Indian automobile company, and Uno Minda, a major auto parts maker, are planning to start making rare earth magnets in India. According to a report by Reuters, this decision comes after the Indian government encouraged companies to reduce dependence on China for these important materials.
🇮🇳 Government’s New Plan – ₹2,500 Crore Incentive
The Indian government is preparing a new incentive scheme worth ₹2,500 crore to promote the production of rare earth elements (REEs) in the country.
Why?
Because China currently controls over 90% of the world’s rare earth magnet processing. These magnets are used in electric vehicles (EVs), wind turbines, smartphones, and defense equipment.
🌍 Global Impact of China’s Control
Due to trade tensions between China and the U.S., China stopped exporting rare earth magnets recently. This disturbed global supply chains and hurt many automobile companies worldwide.
Although shipping to the U.S. and Europe has restarted after talks between Donald Trump and Xi Jinping, India is still waiting for export clearance from China.
🛠️ Mahindra and Uno Minda Join Hands
According to news reports, Mahindra is ready to:
- Partner with other companies for local production
- Sign long-term contracts with Indian manufacturers
- Invest in rare earth magnet manufacturing
Uno Minda has also shown interest. This company already supplies parts to big automakers like Maruti Suzuki.
🇮🇳 Does India Have Rare Earths?
Yes! India has the fifth-largest reserve of rare earth elements in the world.
But the problem is — India still depends on China for processing and refining these materials.
Right now, only IREL, a government-owned company, mines and processes rare earths in India.
In 2024, IREL produced around 2,900 tons, mostly used in India’s nuclear and defense sectors, and some exported to Japan.
🧲 Why Rare Earth Magnets Matter?
Rare earth magnets are used in:
- Electric Vehicles (EVs)
- Wind Turbines
- Mobile Phones
- Military and Space Tech
So, making them in India will help the country become more self-reliant and reduce the risk from global supply disruptions.
📝 Conclusion
With companies like Mahindra and Uno Minda showing interest and the Indian government offering support, India is on the way to build its own rare earth magnet industry. This will not only reduce dependence on China, but also support Make in India and strengthen local manufacturing for high-tech industries.
