Auto equipment manufacturers make 2-pronged plans for rare earth crunch

Firms weigh importing motors or sending parts to China to keep assembly lines running

Automotive (auto) original equipment manufacturers — which have not received any supply of rare earth magnets from China since April 4, nor any response to requests from 35 companies for import licences — have put together a two-pronged strategy to avert production shutdowns by the end of this month. 

Many companies are exploring the option of importing motors or sending motor sub-assemblies to China, where they can be fitted with rare earth magnets and then shipped back to India. The workaround could offer temporary relief, as China’s restrictions apply to magnets, not finished products. However, both alternatives would drive up