The Rare Earth Elements shortage just got real as India’s largest automobile said in a statement that Maruti Suzuki India is exploring multiple solutions to ensure that the supply chain and its manufacturing operations don’t get hampered by the ongoing rare earth magnet shortage issue. Maruti Suzuki further reassured that “Regarding the situation on rare earth, as of now there is no disruption in our operation due to this issue.”
In April 2025, China decided to play a high-stakes game of cards and its ace move could very well strangle the global supply chain. China’s Ministry of Commerce slapped export restrictions on seven rare earth elements and magnets.
Rare Earth Materials: Maruti Suzuki is not leaving anything to chance
Maruti Suzuki said that there is a lot of uncertainty due to the situation, but so far, there is no impact on its manufacturing activities. The car market leader said in a statement, “We are monitoring the situation and pursuing multiple solutions to ensure continuity in our operations.” If and when there is any material impact on the company’s business, the automaker will inform all stakeholders in line with regulatory requirements, Maruti Suzuki India stated. The domestic auto industry is forced to take steps as the Chinese government has put restrictions since April 4 on the export of rare earth elements and related magnets.
China has mandated special export licences for seven rare earth elements and related magnets.The country controls over 90 per cent of global processing capacity for the magnets, used across sectors including automobiles, home appliances and clean energy.
With no clarity on approvals, the Indian automobile industry is staring at production issues, especially for electric vehicles. The domestic automobile industry has also sought government support in expediting approvals from the Chinese government for importing rare earth magnets.The critical materials include samarium, gadolinium, terbium, dysprosium and lutetium, which are essential in electric motors, braking systems, smartphones and missile technology.
Significance of rare earth magnets
Rare earth magnets are integral to permanent magnet synchronous motors (PMSMs) used in EVs for their high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion. In internal combustion engine (ICE) vehicles, the use of rare earth magnets is largely limited to electric power steering and other motorised systems.
