Auto Parts Industry Seeks National Plan To Tackle Rare Earth Shortage

ENA Sectors 2025-07-09 16:32:49 New Delhi, Jul 9 (KNN) The Automotive Component Manufacturers Association (ACMA) has called for the development of a comprehensive national strategy on critical materials to protect India's electric vehicle and mobility manufacturing sector from potential supply chain disruptions. The appeal comes as the country's automotive industry confronts the possibility of production cuts once existing inventory supplies are depleted, following a complete halt in rare earth magnet imports since April. ACMA President Shradha Suri Marwah addressed the situation on Tuesday, emphasising that the restricted availability of rare earth magnets poses a significant threat to the sector's stability. She described the shortage as a major concern while noting that the industry has demonstrated resilience by actively pursuing alternative solutions to mitigate the impact. The current supply shortage stems from China's decision to limit exports of critical rare earth materials, including components essential for electric vehicle magnets. These materials are fundamental to various automotive applications, including power steering systems, electric windows, and high-efficiency motors, making them indispensable for manufacturers across the industry. China's export restrictions have leveraged the country's mineral dominance as a tool for geopolitical influence, creating widespread disruption in global supply chains. The measures have particularly affected India's automotive sector, which maintains significant dependence on Chinese imports for electric vehicle batteries and related components. The supply chain challenge extends beyond India's borders, with the United States and European Union also experiencing similar vulnerabilities due to their reliance on Chinese rare earth materials. China currently controls approximately 85-95 per cent of the world's rare earth metal supply, establishing a commanding position in the global market for advanced industrial materials. Marwah acknowledged that while long-term solutions are being developed, the industry faces immediate operational challenges that require strategic navigation. She noted that manufacturers currently possess inventory stocks of these materials, which, despite being relatively low-cost items, play crucial roles in production processes. The existing supply levels are providing temporary stability while alternative arrangements are being established. In response to the growing recognition of supply chain vulnerabilities, the Indian government recently introduced the National Critical Mineral Mission, aimed at achieving self-reliance in the critical mineral sector. This initiative represents a strategic shift toward domestic capacity building and reduced dependence on external suppliers. (KNN Bureau) 42748 https://knnindia.co.in/news/newsdetails/sectors/auto-parts-industry-seeks-national-plan-to-tackle-rare-earth-shortage 2025-07-09 16:32:49 knnindia.co.in Auto Parts Industry Seeks National Plan To Tackle Rare Earth Shortage