Mahindra Rare Earth Magnet: India is inching closer to being self-dependent when it comes to electric vehicles and high-tech. In a key breakthrough, Mahindra & Mahindra and Uno Minda are set to produce rare earth magnets in India—the high-value components used for EV motors and high-end devices.
Why This Partnership Matters
Mahindra & Mahindra, one of India’s leading auto manufacturers, is now collaborating with Uno Minda, a prominent auto component maker. Their aim is to manufacture rare earth magnets locally. These magnets are critical for electric motors, defense systems, and other electronic goods.
It is very critical that the collaboration has come at this point because it can cut down on India’s import dependence and bring the EV sector forward.
China’s Export Ban and the Global Effect
Today, approximately 90% of rare earth magnets are sourced from China. In April 2025, however, China abruptly halted its exports, catching businesses worldwide by surprise. Although the U.S. and Europe resumed supply, India waits for clearance.
This supply shutdown revealed how dangerous it is to depend on a single nation for essential materials. That’s why India wants to create its own supply chain now.
Government Assistance and Industrial Reaction
The sources indicate that Mahindra recently held talks with the Ministry of Heavy Industries to convey its interest in indigenous production. The firm is willing to sign long-term supply deals or even tie up with local makers such as Uno Minda.
Mahindra has recently introduced two new electric SUVs, and to ensure a secure future, the company is now arranging a local source of rare earth magnets. Uno Minda is also coming forward to assist India in lowering its dependence on Chinese imports.
Why Rare Earth Magnets Are So Important
Rare earth magnets find application in EV motors, smartphones, computers, MRI machines, and missile systems too. For the EV sector, they are like the heartbeat. If supply is halted, the whole auto industry can suffer life-threatening delays.
India’s Manufacturing Timeline
One government official said that complete self-sufficiency will take 1–2 years. But the point is to begin immediately. The government is already planning to provide subsidies and incentive programs to aid firms in this endeavor.