Sona Comstar Eyes India's Rare Earth Scheme, Seeking Foreign Technology Partnerships

Sona Comstar plans to file its application for the government’s rare earth scheme and is deciding whether to do so as a primary or secondary applicant, Managing Director Vivek Vikram Singh told CNBC-TV18.  

The scheme focuses on building local capacity for rare earth magnets, which are essential in electric mobility and several industrial uses. 

India’s Limited Production Base 

Although Sona Comstar is the country’s largest user of rare earth magnets, domestic production remains small. Most Indian manufacturers still work with overseas technology.  

Only 2 to 3companies in Japan and Germany currently make rare earth magnets outside China, leaving few alternatives in the global market. 

China’s Dominance 

China continues to control a major share of the rare earth sector. Its influence spans mining to magnet production.  

Company executives noted that the country’s strong position has shaped international negotiations in the past, highlighting how dependent global supply chains remain. 

Import Licences and Constraints 

Only 4 Indian firms hold Chinese licences that allow them to import rare earth magnets. The licensed quantities are described as very limited, and none of the approved shipments have been delivered so far.  

This gap between permission and supply adds uncertainty for Indian companies reliant on these components. 

Need for Overseas Technology 

With limited domestic capability and few global suppliers, Sona Comstar is looking for foreign partners with established magnet technology. These partnerships are expected to support its participation in the rare earth scheme and help build some level of local production. 

The scheme aims to encourage firms to expand domestic sourcing and reduce reliance on imports. For Sona Comstar, participation fits with its ongoing requirement for large magnet volumes and the need for more reliable access over time. 

Read More: GMDC Share Price Gains Over 8% as Centre Approves Rare Earth Magnet Incentive Scheme! 

Conclusion 

Sona Comstar’s decision to apply for the rare earth scheme shows current supply constraints and the narrow pool of global producers. The company is exploring formal applications and technology tie-ups to secure availability in the coming years. 

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