Latest news with #PMSMs
New Indian Express
24-06-2025
- Business
- New Indian Express
India to roll out incentive scheme for rare earth production 15-20 days
With the rare earth material supply crisis looming large, the government is set to launch an incentive programme to encourage domestic production of these minerals. The government will roll out a scheme to subsidise domestic production of rare earth magnets in 15-20 days, Heavy Industries Minister H D Kumaraswamy said on Tuesday. The minister said that consultation with stakeholders is underway to decide the amount of the incentive programme. According to ministry officials, if the total incentive crosses Rs 1,000 crore, the scheme will be sent to the Union cabinet for approval. The latest crisis emanates from stricter controls imposed by China on the export of seven rare earth elements and finished magnets. This revised framework demands detailed end-use disclosures and client declarations, including confirmation that products will not be used in defense or re-exported to the US. This added scrutiny has prolonged the clearance process to at least 45 days, leading to significant delays and a growing backlog that is tightening global supply chains. China is the world's dominant exporter of rare earth magnets, controlling over 70% of global Rare Earth Element (REE) production and over 90% of refining capacity. Kumaraswamy on Tuesday said India is looking at alternative sources for procurement of rare earth minerals in the interim period, including Japan and Vietnam. He informed that one Hyderabad-based company has promised to deliver 500 tonnes by this year-end. The secretary said the actual production of rare earth magnets will take about two years, and the government, along with the industry, is looking at alternative sources of procurement in the interim period, including Japan and Vietnam. Rare earth magent, an alloy rare earth metal, are integral to Permanent Magnet Synchronous Motors (PMSMs), which are widely used in electric vehicles (EVs) for their high torque, energy efficiency, and compact size. Hybrid vehicles also rely on them for efficient propulsion. In Internal Combustion Engine (ICE) vehicles, their use is primarily limited to electric power steering and other motorized systems. Elements like Dysprosium (Dy), Terbium (Tb), Neodymium (Nd), and Praseodymium (Pr) are crucial for these magnets, especially in high-performance applications. Meanwhile, ministry officials said that said 30 automotive firms have sought authorisation from the Directorate General of Foreign Trade (DGFT) to import rare earth magnets from China a fortnight ago, so that production is not impacted negatively due to the shortage.
New Indian Express
14-06-2025
- Automotive
- New Indian Express
Rare earth magnet crisis: A dent in Indian auto sector
The Indian automotive sector, particularly its electric vehicle (EV) segment, is grappling with a looming supply-chain disruption due to China's stringent export restrictions on rare earth magnets. These low-cost yet functionally critical components are indispensable for modern vehicles, and their scarcity threatens to impact production, new model launches, and the industry's ambitious growth trajectory. What are Rare Earth Magnets and why are they critical? Rare earth magnets are made from alloys of rare earth elements. They are integral to Permanent Magnet Synchronous Motors (PMSMs), which are widely used in EVs for their high torque, energy efficiency, and compact size. Hybrid vehicles also rely on them for efficient propulsion. In Internal Combustion Engine (ICE) vehicles, their use is primarily limited to electric power steering and other motorized systems. Elements like Dysprosium (Dy), Terbium (Tb), Neodymium (Nd), and Praseodymium (Pr) are crucial for these magnets, especially in high-performance applications. China's dominance and new restrictions China is the world's dominant exporter of rare earth magnets, controlling over 70% of global Rare Earth Element (REE) production and over 90% of refining capacity. In April 2025, Beijing imposed stricter export controls on seven rare earth elements and finished magnets, mandating export licenses. This revised framework demands detailed end-use disclosures and client declarations, including confirmation that products will not be used in defense or re-exported to the US. This added scrutiny has prolonged the clearance process to at least 45 days, leading to significant delays and a growing backlog that is tightening global supply chains. Impact on the Indian automotive sector India, which sourced over 80% of its approximately 540 tonnes of magnet imports from China last fiscal year, has begun to feel the pinch. By the end of May 2025, despite nearly 30 import requests from Indian companies being endorsed by the Indian government, none had received approval from Chinese authorities, and no shipments had arrived.
Hans India
11-06-2025
- Automotive
- Hans India
RARE EARTH MAGNETS SUPPLY RISK TO INDIA
New Delhi: A disruption in rare earth magnet supplies lasting beyond a month can impact production of passenger vehicles, including electric models, weighing on the domestic automobile industry's growth momentum, a report on Tuesday said. Rare earth magnets, low in cost but critical in function, could emerge as a key supply-side risk for India's automotive sector if China's export restrictions and delays in shipment clearances persist, Crisil Ratings said in a statement. 'The supply squeeze comes just as the auto sector is preparing for aggressive EV rollouts. Over a dozen new electric models are planned for launch, most built on PMSM platforms,' Crisil Ratings Senior Director Anuj Sethi said. While most automakers currently have 4-6 weeks of inventory, prolonged delays could start affecting vehicle production, with EV models facing deferrals or rescheduling from July 2025, he added. A broader impact on two-wheelers and ICE PVs may follow if the supply bottlenecks persist for an extended period, Sethi said. 'The shortage of rare earth magnets is forcing automakers to reassess supply-chain strategies. Despite contributing less than 5 per cent of a vehicle's cost, these magnets are indispensable for EV motors and electric steering systems,' said Crisil Ratings Director Poonam Upadhyay. Automakers are actively engaging with alternative suppliers in countries such as Vietnam, Indonesia, Japan, Australia, and the US, while also optimising existing inventories, she noted. Rare earth magnets are integral to Permanent Magnet Synchronous Motors (PMSMs) used in EVs for their high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion. In internal combustion engine (ICE) vehicles, the use of rare earth magnets is largely limited to electric power steering and other motorised systems. In April this year, China, the world's dominant exporter of rare earth magnets, imposed export restrictions on seven rare earth elements and finished magnets, mandating export licences. The revised framework demands detailed end-use disclosures and client declarations, including confirmation that the products will not be used in defence or re-exported to the US. With the clearance process taking at least 45 days, this added scrutiny has significantly delayed approvals.
