India working with EV makers towards steady flow of rare earth magnets: Crisil

NEW DELHI: As diversification of supply sources is being actively explored, aligned with policy efforts, the situation continues to evolve for the Indian automotive players in their quest to have a steady flow of rare earth magnets amid China's export restrictions, a Crisil report recently showed.

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Rare earth magnets, low in cost but critical in function, could emerge as a key supply-side risk for the India's automotive sector if China's export restrictions and delays in shipment clearances persist.

A disruption lasting beyond a month can impact electric vehicle (EV) launches, affect production and weigh on the sector's growth momentum, said the Crisil Ratings report.

Recognizing the risk, the government and automakers are taking action on two fronts.