No impact of rare earth magnet shortage on production yet: Maruti Chairman

Business Standard

3 hours ago

China controls over 90 per cent of global processing capacity for the magnets, used across sectors including automobiles, home appliances and clean energy
Press Trust of India New Delhi
Maruti Suzuki India Chairman RC Bhargava on Monday said there is no impact on the company's production due to the shortage of rare earth magnets as of now.
His comments come against the backdrop of restrictions imposed by the Chinese government since April 4 on the export of rare earth elements and related magnets. China has mandated special export licences for seven rare earth elements and related magnets.
China controls over 90 per cent of global processing capacity for the magnets, used across sectors including automobiles, home appliances and clean energy.
"There is no impact at the moment," Bhargava told PTI when asked if the auto major is facing any production issues due to the global shortage.
The production activity at the country's largest carmaker is going on as planned, he added.
When asked if the company sees a production crunch over the next few months due to the issue, he noted: "If the licenses come through and they are supposed to come through, there would not be a problem." The domestic automobile industry has sought government support in expediting approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars.
As per the industry sources, various domestic suppliers have already sought approval from the Chinese government through their local vendors in China. However, no approvals have been granted so far.
Many companies are facing the heat due to the shortage of critical raw materials used across multiple sectors including the automobile industry.
The critical materials include samarium, gadolinium, terbium, dysprosium and lutetium, which are essential in electric motors, braking systems, smartphones and missile technology.
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