Tata Motors says no panic yet over rare earth supply

Tata Motors on Tuesday said it is working on alternative sources for rare earth magnets and that the recent export restrictions imposed by China have not caused any immediate disruption to its production.

"Currently, I think there's no panic because we believe the supplies are coming through. There's no production curtailment. Nothing is being planned at this point in time," Tata Motors Chief Financial Officer PB Balaji said at an event in Mumbai, Reuters reported.

China’s recent move to curb exports of critical metals has disrupted manufacturing in several countries, including India. The impact has been felt particularly in industries like automobile manufacturing and semiconductor chip production.

Rare earth magnets, including neodymium-iron-boron (NdFeB), play a key role in high-performance automotive applications. They are used in traction motors of electric two-wheelers and passenger vehicles, and in power steering motors of both electric and internal combustion engine vehicles.

In the midst of these supply concerns, the Indian government is considering a new subsidy scheme to boost domestic production of rare earth magnets. Union Minister for Heavy Industries and Steel H D Kumaraswamy said on Tuesday that a decision on the matter will be made within 15 to 20 days.

Also Read: India to decide on rare earth magnet subsidy scheme within 20 days: Kumaraswamy

Stakeholder consultations are ongoing to determine how much subsidy will be offered under the proposed scheme. The aim is to encourage domestic manufacturing capacity and reduce dependence on imports, especially in the wake of China's tightening export policy.