Sona Comstar Aims to Break China's Rare Earth Magnet Dominance

Gurgaon-based Sona Comstar is set to become the first Indian company to manufacture rare earth magnets locally , a move aimed at reducing India’s reliance on Chinese imports, which currently supply 90% of global demand. The decision follows new export restrictions from China and aligns with India’s push for self-sufficiency in critical EV components. Earlier in June, China has rejected one of Sona Comstar's rare earth magnet import applications under new export controls. The company, a key supplier to automakers like Tesla and Stellantis, imported 120 metric tonnes of magnets last year and plans to import 200 tonnes this year as it expands its EV business. CEO Vivek Vikram Singh emphasized the need for domestic production and collaboration with the government to secure incentives and finalize investments. With India holding the world’s fifth-largest rare earth reserves, local mining and processing could offer long-term benefits, though development will take years. In the meantime, Sona Comstar continues to grow, with revenue rising five-fold to over $400 million in five years. The U.S. accounts for 40% of its revenue, but the company is shifting focus toward domestic markets. Despite the recent passing of chairman Sunjay Kapur , operations remain stable under new chairman Jeffrey Mark Overly , with Singh assuring stakeholders that the company’s growth trajectory remains unchanged. Looking ahead, Sona Comstar aims to expand its presence in Asia while positioning itself as a key player in India’s green and manufacturing transition.