Tata Motors stated on Tuesday that it is searching for alternate sources of rare earth magnets and that its production has not been immediately hampered by China's latest export restrictions."Currently, I think there's no panic because we believe the supplies are coming through. There's no production curtailment. Nothing is being planned at this point in time," Tata Motors Chief Financial Officer PB Balaji said at an event in Mumbai, Reuters reported. Sources, including alternate technologies, are being looked into, he added.
Due to rare earth shortages, Maruti Suzuki, the biggest automaker in India, has cut its short-term production goals for the electric e-Vitara by two-thirds, according to a Reuters story earlier this month. Manufacturing in a number of nations, notably India, has been hampered by China's recent decision to restrict exports of vital metals. The effects have been most noticeable in sectors like semiconductor chip fabrication and vehicle manufacture. Neodymium-iron-boron (NdFeB) and other rare earth magnets are essential for high-performance automotive applications. Both electric and internal combustion engine vehicles' power steering motors and the traction motors of electric two-wheelers and passenger cars use them.
Key Highlights
More than 90% of the world's ability to process magnets, which are utilized in household goods, clean energy equipment, and automobiles, is controlled by China. In response to high U.S. tariffs, it implemented regulations in April that require businesses to obtain import permits from Beijing.
Also Read:What the Rare Earth Crisis Means for the EV and Electronics Industry
The Indian government is contemplating a new subsidy program to increase domestic production of rare earth magnets in the middle of current supply issues. A decision on the issue would be taken within 15 to 20 days, according to a statement made on Tuesday by Union Minister for Heavy Industries and Steel H D Kumaraswamy.
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