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TrueNorth Capital

15th Jul 2025 · SEBI-Registered Analyst

Indian Companies are experimenting rare-earth alternates

India’s two-wheeler and auto component manufacturers are stepping up efforts to reduce dependence on China for rare earth magnets, a critical component in electric motors. With China controlling nearly 90% of the global supply of heavy rare earth elements (HREEs), domestic firms are exploring lighter alternatives or eliminating the need for rare earths altogether.

SONACOMS
has developed next-gen motors using lighter rare earths like neodymium, samarium, and cerium, which are more widely available and less dominated by China. These light-rare-earth solutions are particularly suitable for two- and three-wheelers and compact electric cars, which require lower power output. However, these motors still need several months of customer validation before they can enter commercial production.
OLAELEC
has already unveiled plans to introduce magnet-free motors, aiming to roll them out in vehicles expected to be delivered between October and December. It was earlier reported that
M&M
and
UNOMINDA
are now exploring local rare earth magnet production — a critical step toward self-reliance. While there’s no immediate replacement for Chinese heavy rare earth magnets, the push for alternatives marks a crucial step toward building a more resilient and self-reliant EV supply chain in India.

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