India’s Rare Earth Magnet Conundrum: A Threat to EV Future

Mumbai: A new report by Primus Partners highlights India’s vulnerability due to its near-total reliance on imported rare-earth magnets, crucial for electric vehicles (EVs) and clean energy. The report proposes a Five-pillar strategy to localize rare earth magnet production and reduce dependence on China.

A Five-Pillar Blueprint

The strategy includes market assurance through government-backed price guarantees, setting up pilot hubs and champions, securing upstream resources, promoting innovation infrastructure, and ensuring institutional alignment. The report emphasizes the need for coordinated action to secure a global role in the rare earth magnet ecosystem.

Rising Demand and Zero Domestic Production

With 30% EV penetration targeted by 2030, demand for rare earth magnets is expected to grow to 7,150 tonnes annually. Despite significant monazite reserves, India currently manufactures no NdFeB magnets, relying heavily on imports from China.