Updated: June 16, 2025
By [Ayush Singh Sardar], Business & Technology Correspondent
Key Quote
“Rare earth magnet inventories are projected to last only until mid‑July 2025 for several passenger vehicle and two‑wheeler applications,”
said Jitin Makkar, Senior Vice President & Group Head – Corporate Ratings, ICRA.
Source: ICRA Press Release icra.in
5 Key Takeaways
- Inventory Crunch
- India’s rare earth magnet stocks (Neodymium‑Iron‑Boron, NdFeB) may deplete by mid‑July 2025, mirroring the 2021–22 chip shortage that cost the industry ~100,000 vehicle sales motoring-trends.com.
- China’s Export Controls
- Beijing’s tightened export licensing (April 2025) affects 85% of India’s ~USD 200 million annual magnet imports motoring-trends.comeconomictimes.indiatimes.com.
- Production Impact
- EV makers (e.g., Maruti Suzuki) have cut e‑SUV targets by ~70% to conserve magnets; ICE vehicles with power steering could follow suit auto.economictimes.indiatimes.com.
- Contingency Plans
- Options include importing fully assembled motors, re‑exporting rotors for magnet insertion, magnet substitution, or magnet‑free motor R&D—each with logistical and regulatory hurdles auto.economictimes.indiatimes.com.
- Global Response
- The G7 is drafting a critical minerals strategy to diversify supply away from China, which controls ~90% of refined magnet capacity reuters.com.
Expert Analysis
In an exclusive interview, Dr. Amit Kumar, Professor of Materials Science at IIT Madras, underscored the technical challenge:
“Substituting high‑performance NdFeB magnets is not straightforward. Alternatives like ferrite motors offer lower torque density and efficiency, impacting EV range and vehicle dynamics.”
Dr. Kumar’s recent paper in Journal of Rare Earths (2024) also highlights that only 10% of global NdFeB refining capacity exists outside China discoveryalert.com.au.
Timeline of Events
| Date | Event |
|---|---|
| Apr 1, 2025 | China updates export licensing for critical mineral products including NdFeB magnets. |
| Jun 12, 2025 | ICRA issues press release warning of mid‑July supply depletion. |
| Jun 14, 2025 | Maruti Suzuki announces cut in e‑Vitara production targets by 70%. |
| Jun 16, 2025 | G7 draft strategy to secure critical minerals is circulated ahead of summit. |
Fact‑Check
| Claim | Source |
|---|---|
| China controls ~85% of India’s rare earth magnet imports. | ICRA Report motoring-trends.com |
| Inventories to run out by mid‑July 2025 for automotive applications. | ICRA Press Release icra.in |
| Chinese export controls initiated April 2025 in response to U.S. tariffs. | Reuters economictimes.indiatimes.com |
| G7 nations target diversification of critical mineral supplies to counter non‑market practices. | Reuters reuters.com |
Daily Digest
- June 17, 2025: SIAM meets Commerce Ministry to request diplomatic intervention.
- June 18, 2025: Tata Motors to pilot magnet‑free induction motors in two‑wheeler prototypes.
- June 20, 2025: Government to announce incentives for domestic rare earth refining capacity.
