Mahindra & Mahindra and auto parts maker Uno Minda are exploring local production of rare earth magnets to reduce dependence on China, amid recent export restrictions imposed by Beijing. 

Mahindra, which recently launched two electric SUVs, is reportedly open to partnerships or long-term contracts with local magnet suppliers. Uno Minda also expressed interest in manufacturing magnets locally during a meeting in June with the Ministry of Heavy Industries. Maruti Suzuki has already flagged potential production delays due to magnet supply disruptions.

While India holds the fifth-largest reserves of rare earth minerals, mining is controlled by government-run IREL. JSW Steel has expressed interest in mining, which could take years to materialise.

China, which supplies 90 percent of the world’s rare earth magnets, halted shipments in April. While exports to the U.S. and Europe have resumed, Indian firms are still waiting for clearances, prompting the Indian government to consider strategic stockpiles and production-linked incentives.