How Ather Energy plans to tackle rare earth magnet crisis
What's the story
Ather Energy, a Bengaluru-based electric scooter manufacturer, is changing its strategy to reduce dependence on heavy rare earth magnets. The decision comes in light of recent Chinese curbs that have triggered global shortages. Tarun Mehta, the company's co-founder and CEO, told Moneycontrol that they are now focusing on using all their engineering resources to transition from heavy to light rare earth technology.
Strategic transition
Transition solves current crisis
Mehta explained the transition from heavy to light rare earth technology as a "good transition that solves this crisis for us." The Indian EV industry has been facing supply risks due to the concentrated global supply of heavy rare earths. These are critical for high-performance magnets used in EV motors. Other companies like Ola Electric are also working on ferrite motors without rare-earth elements to mitigate disruptions.
Import dependency
India imported 460 tons of rare-earth magnets from China
In FY2024, India imported some 460 tons of rare-earth magnets, nearly all from China. The figure is expected to rise to 700 tons in FY25. Mehta's comments come as Prime Minister Narendra Modi met Chinese President Xi Jinping. India's automotive sector has been seeking relaxation in Beijing's curbs on rare earths magnets since April, which have affected EV makers' production plans.
Approval backlog
China's restrictions on heavy rare earth magnets
According to Bloomberg News, more than 50 Indian applications to import heavy rare earth magnets are still awaiting approval in China. However, China has begun easing restrictions on rare earth metals and critical minerals exports amid improving trade relations with India. Although an official statement is still awaited, PM Modi's visit to China has likely raised hopes for relaxation in export curbs.
Focus shift
Ather is adamant on migrating to light rare earths
Mehta said that while heavy rare earth supplies have resumed for now, Ather is "razor sharp" on migrating to light rare earths. These are not under sanctions or any export restrictions. He added that the performance trade-off is minimal and does not impact two-wheeler EVs.