Rare Earth Magnet: Dependence on China will decrease, this company has a big plan:

News Topical, Digital Desk : India's leading auto component manufacturer Sona Comstar (Sona BLW Precision Forgings) has planned to produce rare earth magnets in India itself. This news has come to light quoting Reuters. According to the report, this step is in the direction of the government policy of reducing import dependence on China and promoting domestic production. In fact, China had imposed a ban on rare earth magnets in April amid the tariff war. China produces 90 percent of the world's rare earth magnets. Even though China has eased the restrictions after talks with the US, now countries and companies around the world are looking for alternatives outside China.

India plans to reduce dependence on exports

India is the world's third largest car market and the country has the world's fifth largest rare earth reserves. The country is now working on a new scheme to encourage domestic production of magnets and for this there is a plan to give incentives for production in the country. After the announcement of this government scheme, Sona Comstar has become the first company in India to announce to start magnet production in the country.

What did the company say The company's CEO Vivek Vikram Singh told Reuters that because we are the largest importer of rare earth magnets in India, this ban has affected us the most. We have to look towards India's self-reliance and we are working in this direction together with the government. The company imported 120 metric tonnes of magnets from China in the last financial year and planned to import up to 200 tonnes this year to meet the growing demand of its electric vehicle (EV) customers. EV customers currently account for about one-third of the company's total revenue.

When will the project start The company said that it will start working on the project once the government has a clear picture about the incentive plan. The company has enough resources to invest in production-related projects. According to Singh, the company's income has increased five times to more than Rs 3,300 crore in the last five years. However, it may take years to start mining and processing rare earths in India. Still, this is considered a big step. The company supplies gears and motors to companies like Tesla and Stellantis. Currently, 40% of the company's income comes from the US, followed by India and Europe. Recently, the company has acquired Escorts Kubota's Indian railway business, due to which it is now gaining a foothold in other sectors besides automobiles.