Latest news with #JitinMakkar
The Wire
13-06-2025
- Automotive
- The Wire
Depleting Inventory of Imported Rare-Earth Magnets a Concern For EV Industry
A battery pack in a Nissan electric vehicle. Representative image. Photo: Mariordo Mario Roberto Duran Ortiz/Wikimedia Commons, CC BY-SA 3.0 Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute Now New Delhi: Stakeholders in the electric vehicle (EV) industry are concerned about the fact that inventories of rare-earth magnets used in EV traction motors and power steering systems could run dry by mid-July this year. Rating agency Icra has said that in wake of the depleting inventory, there is a need for urgent contingency planning. 'The rare-earth magnet supply shock is a serious concern, particularly for EVs and premium passenger vehicles. Rare-earth magnets, especially neodymium-iron-boron (NdFeB), are indispensable for high-efficiency traction motors and other advanced automotive systems. With inventories expected to deplete by mid-July, contingency planning has become urgent,' said Jitin Makkar, senior vice president and group head, corporate ratings, Icra, reported Business Standard. The delay in the shipments of rare-earth magnets began in April, when authorities in China introduced new licensing rules and intensified inspections, which led to custom clearances slowing down. It resulted in unpredictable shipping timelines and uncertainty about future availability. According to the estimates of Crisil, another rating agency, the present challenge could affect up to 6-7 per cent of quarterly EV production if the issue remains unresolved within the next two months. In FY 25, India imported around $200 million worth of rare-earth magnets. A majority of these imports were used in automotive and industrial applications. In electric two-wheelers, motors cost between Rs. 8,000 and Rs. 15,000, with rare earth magnets accounting for around 30 per cent of the motor cost. The rare-earth magnets are important because of their high magnetic strength, energy efficiency, and thermal stability. These properties are difficult to replicate with conventional alternatives like ferrite magnets. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments. Top Stories We Cannot Forget the Plurality of Pakistan View More
Hans India
13-06-2025
- Automotive
- Hans India
EV makers feel heat as China curbs supplies
New Delhi: The inventories of rare earth magnets may taper off by mid-July 2025 for certain automotive applications, following China imposing export restrictions and delaying clearance of shipments, according to an ICRA report released on Thursday. While the automobile industry is exploring a range of contingency options, each of these appears ridden with logistical, regulatory, and engineering complexities, exacerbating the prevailing uncertainty, the report states. Jitin Makkar, Senior Vice President at ICRA, said: 'The industry, having recovered from the semiconductor supply crunch of 2021–22 that shaved off nearly 100,000 units - or about 4 per cent - from passenger vehicle production, now faces a fresh disruption. With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications.' The magnets in question—neodymium-iron-boron (NdFeB)—are prized for their strength and efficiency. They are reserved for high-performance automotive applications such as traction motors in electric vehicles (two-wheelers and passenger vehicles) and power steering motors (in passenger vehicles) in both electric vehicles and internal combustion engine vehicles. In FY2025, India imported around $200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85 per cent of this sourced from sourced over 80 per cent of its 540 tonne magnet imports from China last fiscal. Indian auto component manufacturers/Original Equipment Manufacturers (OEMs) are exploring a range of options. These include importing fully assembled motors from China, shipping the rotors, on which the rare earth magnets are mounted, to China for magnet assembly and then re-importing the assembled rotors. They are also substituting rare earth magnets with alternatively engineered materials aimed at achieving similar magnetic performance.
NDTV
12-06-2025
- Automotive
- NDTV
India's Auto Sector At Risk As China's Rare Earth Magnet Curbs Tighten: ICRA
New Delhi: Rare-earth magnet inventories are likely to 'taper off' by mid-July 2025 for the automobile industry, weighed down by the export restrictions from China and ensuing shipment delays, according to a release by rating agency ICRA. "With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications," Jitin Makkar, Senior Vice President and Group Head - Corporate Ratings, ICRA Limited. The Industry is looking for contingency options and alternative supply chains, but it is riddled with difficulties. "While the automobile industry is exploring a range of contingency options, each of these appears ridden with logistical, regulatory, and engineering complexities, exacerbating the prevailing uncertainty," the rating agency said. "India imported around USD 200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85% of this sourced from China. While the trade value may appear modest, the strategic dependence it reflects is anything but the supply uncertainty has cast a shadow on production planning. The dependence on China for these specialised materials could upend the automobile sector, particularly the fast-growing electric vehicle segment, if the concern remains unresolved." Makkar added. In order to deal with this risk, India is exploring various options such as importing fully assembled motors from China, or shipping the rotors, on which the rare earth magnets are mounted, to China for magnet assembly and then re-importing the assembled rotors. Additionally, substituting rare earth magnets with alternatively engineered materials or introducing rare earth magnet-free motors could also be seen as alternative options. However, a Maruti Suzuki spokesperson on Thursday said, "Regarding the situation on rare earth, as of now, there is no disruption in our operation due to this issue. There is a lot of uncertainty and the situation is continuously evolving." Maruti Suzuki added, "We are monitoring the situation and pursuing multiple solutions to ensure continuity in our operations. If and when there is any material impact to our business, we will inform all stakeholders in line with regulatory requirements."
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Business Standard
12-06-2025
- Automotive
- Business Standard
ICRA warns EV traction motor inventories may run out by mid-July
Inventories of rare-earth magnets used in critical automotive components — particularly electric vehicle (EV) traction motors and power steering systems — could run dry by mid-July this year, according to rating agency Icra. With China enforcing tighter export controls, industry stakeholders are staring at serious supply bottlenecks that could disrupt vehicle production, especially in the rapidly expanding EV segment. China is the source of nearly 85 per cent of India's rare earth magnet imports. 'The rare-earth magnet supply shock is a serious concern, particularly for EVs and premium passenger vehicles,' said Jitin Makkar, senior vice president and group head – corporate ratings, Icra. 'Rare-earth magnets, especially neodymium-iron-boron (NdFeB), are indispensable for high-efficiency traction motors and other advanced automotive systems. With inventories expected to deplete by mid-July, contingency planning has become urgent.' Icra's warning comes after weeks of shipment delays, which began escalating in April this year as Chinese authorities introduced new licensing rules and also intensified inspections. Customs clearances have slowed down significantly, creating unpredictable shipping timelines and uncertainty about future availability. Crisil, another rating agency, has also flagged this as a significant risk to automotive supply chains. According to its estimates, the current disruption could affect up to 6-7 per cent of quarterly EV production if the issue remains unresolved within the next two months. India imported approximately $200 million worth of rare earth magnets in 2024-25 (FY25), a majority of which was used in automotive and industrial applications. Although the trade value is relatively modest, the strategic reliance on China for these specialised components is now under the spotlight. In electric two-wheelers alone, motors typically cost between ₹8,000 and ₹15,000, and rare earth magnets account for nearly 30 per cent of the motor cost. These magnets are prized for their high magnetic strength, energy efficiency, and thermal stability — properties that are difficult to replicate with conventional alternatives like ferrite magnets. 'The situation has exposed the fragility of India's high-tech component supply chain,' said an executive from a leading auto components firm. 'Unlike semiconductors, where global players already have a playbook, the options for rare-earth magnets are more limited and fragmented.' To navigate the crisis, automakers and component suppliers are exploring several stop-gap solutions, including importing fully assembled motors from China, shipping rotors to China for magnet assembly and re-importing them, experimenting with engineered alternatives that replicate the magnetic performance of rare earths without being classified as such, and accelerating the development of magnet-free motors that rely on inductive or electromagnet-based technologies. However, each of these options presents its own set of challenges. 'These are not quick fixes,' Makkar said. 'They involve engineering validation, regulatory clearances, and logistics that could take months to stabilise.' The current crunch has reignited calls for building domestic capabilities in rare earth processing and advanced magnet manufacturing. India has rare earth reserves but lacks large-scale refining and separation infrastructure, which is key to producing high-performance magnets like NdFeB.
Hans India
12-06-2025
- Automotive
- Hans India
Electric vehicle production may be hit as China chokes supply of rare earth magnets
New Delhi: The inventories of rare earth magnets may taper off by mid-July 2025 for certain automotive applications, following China imposing export restrictions and delaying clearance of shipments, according to an ICRA report released on Thursday. While the automobile industry is exploring a range of contingency options, each of these appears ridden with logistical, regulatory, and engineering complexities, exacerbating the prevailing uncertainty, the report states. Jitin Makkar, Senior Vice President at ICRA, said: "The industry, having recovered from the semiconductor supply crunch of 2021–22 that shaved off nearly 100,000 units - or about 4 per cent - from passenger vehicle production, now faces a fresh disruption. With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications.' The magnets in question—neodymium-iron-boron (NdFeB)—are prized for their strength and efficiency. They are reserved for high-performance automotive applications such as traction motors in electric vehicles (two-wheelers and passenger vehicles) and power steering motors (in passenger vehicles) in both electric vehicles and internal combustion engine vehicles. In FY2025, India imported around $200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85 per cent of this sourced from China. "While the trade value may appear modest, the strategic dependence it reflects is anything but. The supply uncertainty has cast a shadow on production planning. The dependence on China for these specialised materials could upend the automobile sector, particularly the fast-growing electric vehicle segment, if the concern remains unresolved', Makkar added. The report further states that to mitigate the risk, Indian auto component manufacturers/Original Equipment Manufacturers (OEMs) are exploring a range of options. These include importing fully assembled motors from China, shipping the rotors, on which the rare earth magnets are mounted, to China for magnet assembly and then re-importing the assembled rotors. They are also substituting rare earth magnets with alternatively engineered materials aimed at achieving similar magnetic performance as rare earths without crossing the threshold that would classify them as rare earth magnets. These workarounds, however, come with logistical, regulatory, and engineering complexities. Implementing some of these alternatives would also involve accelerating the development, testing, and validation cycles to minimise production disruptions. The stakes are high. As Indian manufacturers push towards securing a stable supply chain, the challenge with critical components like rare earth magnets is their concentrated sourcing destination. The current crisis, while disruptive, may also serve as a catalyst for innovation and strategic diversification - both in sourcing and in science, the report added.
