Sona Comstar, India’s largest importer of rare earth magnets, has announced plans to locally manufacture these critical components used in electric vehicles (EVs), responding to the Indian government’s proposed incentives for domestic production.

The move follows China’s recent decision to restrict exports of rare earth magnets, which has disrupted global supply chains. Gurgaon-based Sona Comstar, officially Sona BLW Precision Forgings, ranks among the Indian companies to make a formal commitment toward local production following the policy announcement.

Sona Comstar imported 120 tonne of magnets from China last year and plans to increase that to 200 tonne this year to meet rising EV demand. While mining efforts are long-term, the company has sufficient funds, driven by a five-fold revenue surge to over Rs 3,340 crore (USD 400 million) in five years.