Indian firms plot to break free of China rare earth control

Indian auto component and two-wheeler makers have devised a plan to break free from China's stranglehold on magnets: replace heavy rare-earth elements with light ones, or better yet, build magnet-free automotive motors.

- Ayaan Kartik

Sona Comstar, the country's eighth largest automobile parts maker, has developed new motors using light rare earth elements like cerium, samarium and neodymium, according to a top company executive. Ather Energy Ltd's co-founder and chief executive Tarun Mehta, too, told Mint that the two-wheeler industry can move towards light rare earth magnets.

Meanwhile, Ola Electric's founder and managing director Bhavish Aggarwal informed investors on Monday that the company has developed magnet-free motors, which will be installed in vehicles whose deliveries will start in the October to December quarter.

Rare earths, while abundant but not easily found in large deposits that can be mined, are known for their unique magnetic and luminescent properties. They are widely used in automotive motors and LED lights. China dominates the refining and supply of 90% of heavy rare earths or those with higher atomic weight, according to estimates by the International Energy Agency. However, its share in light rare earths is estimated to be lower at 60-70%, making the supply chain more diverse.

Gurugram-based Sona Comstar said light-rare-earth solutions can be used in the medium term by two- and three-wheeler makers, and even small car manufacturers, as they require less power to run.