Sona Comstar Eyes Magnet Manufacturing to Boost EV Supply Chain

Sona BLW Precision Forgings Ltd (Sona Comstar), one of India’s largest auto component manufacturers, prepares to manufacture rare-earth magnets domestically to lessen reliance on imports from China. This comes in the wake of China limiting exports of rare-earth magnets, an essential component used in electric vehicle (EV) motors, and other advanced automotive components.

With EVs making up a third of Sona Comstar’s revenue, the company imported almost 120 tonnes of magnets in FY24, and planned to raise that level to 200 tonnes. The necessity of an export license from China, effective April 2025, ensures lack of supply chain clarity and drove the company to action on local production instead.

• Sona Comstar to begin domestic production of rare-earth magnets to reduce reliance on Chinese imports.
• The move strengthens India’s EV supply chain amid global raw material disruptions.
• Government incentives and rising EV demand drive localisation efforts in critical auto components.

Despite hosting the world’s fifth-largest rare-earth reserves, India does not have the facilities to process them, therefore this will be an exciting milestone for the industry. The company has enjoyed phenomenal financial growth (fivefold over five years) naturally exceeding $400 million dollars and can afford the investment on its magnet production project.

Also Read: What the Rare Earth Crisis Means for the EV and Electronics Industry

The expected launch of a scheme from the Indian government for rare-earth magnet manufacturing by mid-July aligns favorably. At the same time, the government is facilitating short-term imports through end-user certification, while the auto component industry pushes for long-term self-reliance.

Sona Comstar’s initiative is poised to strengthen India’s EV supply chain and reduce dependence on Chinese critical material imports.