India Needs National Strategy on Critical Auto Materials

The Indian auto component industry is urging the government to formulate a national strategy to address the shortage of critical materials, particularly rare earth magnets, which are essential for electric vehicle (EV) production. As the global demand for EVs surges, manufacturers are grappling with supply chain disruptions that threaten to stall this rapidly growing sector. Industry leaders argue that a cohesive strategy is vital to ensure the sustainable growth of the Indian EV market. Rare earth magnets, crucial for the production of electric motors, are primarily sourced from a limited number of countries, making the supply chain vulnerable to geopolitical tensions and trade restrictions. The shortage has led to increased costs and production delays, posing a significant challenge for India's ambitious EV adoption targets. Without a robust national policy, experts warn that India may struggle to compete in the global EV market, where innovation and efficiency are key. A national strategy could involve diversifying supply sources, investing in domestic mining and processing capabilities, and fostering research and development in alternative materials. Such measures would not only mitigate the current shortages but also strengthen India's position as a leader in the global transition to sustainable transportation. Industry stakeholders are keen to collaborate with the government to develop a comprehensive approach that secures the future of India's EV industry.

— Authored by Next24 Live