Tata Motors working with govt for alternate sources for rare earth magnets: N Chandrasekaran

Tata Motors, the homegrown car manufacturer that leads the Indian electric passenger vehicle market, is working with the government to find alternate sources for rare earth magnets. The move comes at a time when China's sudden export curbs for the critical rare earth magnets have created anxiety in the auto industry, and several automotive players have been expecting massive disruption, even production shutdown, in the coming months if the situation continues.

The rare earth magnet is one of the highly critical components for electric vehicles. These magnets are also heavily used in the internal combustion engine-powered vehicles. China controls 90 per cent of the global rare earth magnet market, and its sudden export curb has left the auto industry players in trouble. Tata Motors claims to be working with the Indian government to find a solution by finding an alternate source for rare earth magnets.

PTI has reported that N Chandrasekaran, Chairman of Tata Sons and Tata Group, has said to the company's shareholders that as of now, the rare earth magnet crisis is not a concern, but this is something that he automaker is watching very carefully. "As of now, we are okay. We are not facing issues...We are able to source the magnets that we need, and we also have plans for having the right level of inventory. We are working with the government. Also, we are working on sourcing from alternate sources," Chandrasekaran noted while responding to queries from shareholders on the impact of China's move to restrict exports of rare earth elements and the shortage of magnets.

The Indian automobile industry had already sought government support in expediting approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars. However, the crisis still continues.

Meanwhile, speaking about the impact of the Israel-Iran conflict on the operations of Tata Motors and Jaguar Land Rover, Chandrasekaran said that these companies will be able to tackle any geopolitical issues in the short term, but are completely ready and poised for excellent growth and will leverage the opportunity that this industry has to offer.

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