Rare-earth magnets: Why an ‘India fix’ is not enough

Earlier this year, a Pune firm quietly solved a problem that has vexed policymakers for decades.

- AJIT RANADE & VIJAY L. KELKAR

Ashvini Rare Earth commissioned India’s first plant to produce neodymium-praseodymium (Nd-Pr) metals, essential for the permanent magnets that drive electric vehicle (EV) motors, wind turbines and high-end electronics. On paper, this should have been a turning point. With a domestic source finally emerging, why didn’t India’s leading EV makers—Ather and Bajaj Auto included—switch from Chinese magnets to homegrown supply? As The Ken reported, they mostly haven't. India may produce the raw rare-earth metal, but it still depends heavily on China for these magnets and the technology that makes them.

This gap between metals and magnets reveals a deeper reality. The geopolitical supply chain has grown too entrenched to unwind quickly. What looks like an ‘India solution’ was only partial, arriving late and without the scale or reliability required. There is reason why Ather and Bajaj still buy Chinese magnets. Those needed for EV two-wheelers are sintered NdFeB magnets, far more advanced than the bonded magnets historically made in India for sensors and small motors. Even with the Nd-Pr breakthrough, India lacks commercial-scale capability in sintered magnets that meet automotive-grade quality.