As per a recent update Tata motors have notified that the rare earth metal export curbs have not affected them. Chairman Chdrasekaran detailed to Autocar professionals that Tata has been able to maintain stable supply and strategic inventories without any delays or issues.
Tata is currently India’s largest electric vehicle manufacturer and further iterated that as a integral part of the nation’s economy it has been exploring alternate sources of the rare earth metal supply to ensure a safeguard against future issues. Currently China accounts for around 36% of global rare earth mining and barely 90% of processing. China has a hegemony over the supply of Neodymium and Dysprosium used in Ev motors. The Recent export curbs have shocked the manufacturers world over into action to review new sourcing strategies.
The Report by Autocar Professional further details that Tata has taken a proactive approach for the rectification of the issue at hand, and have started developing alternate supply chains and strategic inventories for the users.
Tata’s New Plans to Streamline Function
To further streamline the internal functions the manufacturer has been planning to split its commercial vehicle and passenger vehicle businesses into two separately listed entities by late 2025. The Move is designed to sharpen strategic focus on EV and green mobility.
Tata has profound plans to be able to achieve 30% EV penetration in its passenger vehicles market by 2030. The report further details how the brand has been planning to expand its Bus portfolio under the Pm E -bus seva and further target the manufacturing and production of Hydrogen powertrain trucks.
Since China holds and controls the ability to control 90% of the processing of such magnets there have been reports that suggested that it has been using this prowess as a leverage to wage a war against US Tariff implications. A Reuters report further elucidated that Prime Minister Narendra Modi’s government now seeks to develop domestic manufacturing capabilities and is considering offering production- based fiscal incentives to companies.
Ministry Of Heavy Industries to Fund The Difference
Reuters has further reported that since the scheme is being drafted by the ministry of heavy industries, it also envisions partly funding the difference between the final price of the made in India magnet and imports. Such incentives would help achieve cost parity and boost local demand. The Government would likely meet industry officials next week to finalize the details. India already has its sources of rare earth minerals as they have been excavated for years by state run IREL, yet these are mainly used by the atomic energy and defense units, with supplies for other uses being imported from China.
India’s Action Plan
India could harness the situation and further enhance its capability to provide the world rare earth minerals as its the third largest reserves of rare earth minerals of around 6.9 million tons, Beyond that US geological survey points out that India has only been able to harness a fraction of its total reserves due to the limited investments by private companies.
To combat the situation India has launched an all new National Critical Mineral Mission , which would help the nation attain self reliance in the sector. In recent years , it has begun exploration for neodymium , a rare earth metal widely used in magnets for the auto industry. New projects have been further spearheading exploration for neodymium, a rare earth metal widely used in magnets for the auto industry.
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