Hyundai India is set to leverage the global supply chain of its parent company, Hyundai Motor Company, to procure rare earth magnets, according to sources speaking with CNBC-TV18, as concerns regarding potential supply limitations rise.
The company is actively observing the situation but does not foresee any immediate production reductions in the short term, said the sources.
Amid the changing landscape surrounding rare earth magnet availability, Hyundai India does not anticipate any interruptions in its electric vehicle (EV) production.
Reportedly, the company is well-supplied with enough inventory to fulfill its needs for the rest of the year.
This development occurs in the context of increasing global uncertainty regarding the accessibility of rare earth magnets.
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India’s automotive sector is preparing for possible obstacles arising from a worsening supply crisis in rare earth magnets—a vital element in both EVs and internal combustion engine (ICE) vehicles.
Previously, Maruti Suzuki cut its short-term production goal for its inaugural electric vehicle, the e-Vitara, by two-thirds due to a deficit in rare earth minerals. In discussion with CNBC-TV18, chairman RC Bhargava remarked, “Manufacturing will remain unaffected if China issues licenses promptly.”
Rare earth magnets play a crucial role in motors, sensors, and various electronic systems that are essential for modern vehicles.
The ongoing global shortage has been intensified by new export regulations imposed by China.
Since April 4, Indian manufacturers have reportedly not received any rare earth magnet shipments from China due to a regulation requiring exporters to acquire an end-use certificate for all outbound shipments. This certificate must affirm that the materials will not be utilized for military or dual-use purposes.
China dominates over 90% of the global rare earth supply chain and has been prioritizing shipments to European automakers such as Stellantis and Volkswagen.
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