Updated 30 June 2025 at 19:06 IST
Rare Earth Metal Crisis: As China Curbs Exports, Sanjay Kapur’s Sona Comstar Offers A Way Out - Details
China, which produces nearly 90% of the world’s rare earth magnets, imposed export restrictions in April in response to US tariffs. Although both countries recently agreed to fast-track export clearances, manufacturers globally are exploring alternatives.
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China has stopped exporting six important heavy rare earth metals and magnets. | Image:
Meta AI
Sona Comstar, India’s largest importer of rare earth magnets, is drawing up plans to manufacture them domestically as part of a broader government push to boost local production and cut dependence on Chinese imports, according to an exclusive report by Reuters.
China, which produces nearly 90% of the world’s rare earth magnets, imposed export restrictions in April in response to US tariffs. Although both countries recently agreed to fast-track export clearances, manufacturers globally are exploring alternatives.
India—home to the third-largest car market and significant rare earth reserves—is working on a new incentive program to encourage magnet production at home.
Gurgaon-based Sona Comstar, officially Sona BLW Precision Forgings, is the first Indian company to publicly signal interest in manufacturing magnets locally under this initiative.
“We are the most impacted by these curbs and are working with the government on self-sufficiency,” CEO Vivek Vikram Singh told Reuters. The company imported 120 metric tonnes of magnets from China last year and plans to import 200 tonnes this year to meet rising EV demand.
Singh statead that investment decisions would depend on final details of the incentives but noted that Sona Comstar has adequate funds—its revenue has grown more than fivefold to over $400 million in five years.
The company supplies components to Tesla and Stellantis, with EV products contributing nearly one-third of its total revenue. Though local mining and processing of rare earths will take time, Sona’s plans could help reduce import reliance in the long run.
Sona Comstar has also diversified beyond automotive. Following its acquisition of Escorts Kubota’s railways business, it expects India to become its largest revenue contributor this year. The U.S. currently accounts for about 40% of its sales.
Singh also addressed leadership concerns after the sudden death of Chairman Sunjay Kapur in June. He said the company's professional management and newly appointed chairman Jeffrey Mark Overly ensure continuity in strategy.
Published 30 June 2025 at 19:06 IST