Mahindra and Uno Minda Explore Rare Earth Magnet Production in India Amid China Curb

Mahindra & Mahindra and Uno Minda are exploring the domestic production of rare earth magnets, as per Reuters reports. This follows recent disruptions in magnet imports from China and a government push to strengthen India’s supply chain.

China, which accounts for about 90% of global rare earth magnet output, imposed export restrictions in April 2025. While exports to the US and Europe have resumed, Indian companies are still awaiting approvals. The delay has created concerns for manufacturers dependent on a steady supply.

Government’s Incentives and Reserves

To address the disruption, the government is looking at incentive schemes and the possibility of building a stockpile. Rare earth magnets are used in electric vehicles, electronics, and defence equipment. The Ministry of Heavy Industries recently held meetings with companies to gauge interest in local production.

Mahindra Evaluating Partnerships

As per report, during the meeting, Mahindra said it is open to working with partners or entering long-term contracts with domestic magnet suppliers. The company has recently launched two electric SUVs, creating steady in-house demand for rare earth magnets.

Uno Minda expressed interest in the same meeting. Sona Comstar had earlier announced its intention to produce magnets in India. Maruti Suzuki, one of Uno Minda’s clients, has already reported risks of production delays due to current supply issues.

Mining Remains a Bottleneck Despite Reserves

India has the 5th-largest rare earth mineral reserves globally, but most of the mining is controlled by IREL. In 2024, IREL produced around 2,900 tonnes of rare earth ores, mainly used by the atomic and defence sectors. The firm plans to stop exports and increase domestic processing.

IREL has sent teams to Myanmar and is in talks with 5 Central Asian countries for mineral exploration. These efforts aim to supplement India’s raw material needs for future magnet manufacturing.

Conclusion

Final investment decisions from Mahindra and Uno Minda will depend on the availability of incentives and raw materials. Domestic production is expected to take 1 to 2 years if plans move forward.

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