China’s Rare Earth Magnet Ban Spurs India’s ₹18,000 Cr Critical Mineral Mission Amid Rising Sectoral Risks
India’s dependence on China for rare earth magnets — critical components in high-tech and green tech industries — means that China’s export restrictions could significantly affect several listed Indian companies, especially those in sectors like automotive, electronics, energy, and defense.
Here are listed Indian stocks that may be adversely impacted by the rare earth magnet ban:
Auto & EV Sector (high use of rare earth magnets in motors):
Tata Motors – EV and commercial vehicle segments rely on permanent magnet motors.
Mahindra & Mahindra – Focused on EVs through Mahindra Electric.
Hero MotoCorp / Bajaj Auto / TVS Motor – All developing or selling electric two-wheelers.
Olectra Greentech – EV bus maker, dependent on imported components including magnets.
Industrial & Capital Goods (heavy use in motors, generators, robotics):
Siemens India / ABB India – Advanced automation and motor systems use rare earth magnets.
CG Power / Bharat Bijlee – Make industrial motors and equipment requiring permanent magnets.
TD Power Systems – Engaged in large rotating machines and generators.
Electronics & White Goods:
Dixon Technologies / Amber Enterprises – Large contract manufacturers for electronics/ACs.
Voltas / Blue Star / Johnson Controls-Hitachi – HVAC manufacturers that use magnetic compressors and components.
Bajaj Electricals / Havells India – Use permanent magnets in appliances and fan motors.
Energy & Renewables (esp. wind & solar):
Suzlon Energy / Inox Wind – Use permanent magnets in wind turbine generators.
NTPC / Tata Power / ReNew Energy – Indirect exposure via green projects using magnet-driven systems.
Waaree / Premier Energies / Borosil Renewables – While solar panels use fewer magnets, battery storage and inverters may be affected.
Defense & Aerospace:
Bharat Electronics (BEL) – Uses rare earths in radar and missile systems.
Heavy Engineering:
BHEL / L&T / KEC International – Use motors and components with embedded rare earth magnets in power and transmission projects.
Specialty Chemicals / Magnets (if dependent on imports):
Galaxy Surfactants / Neogen / Aarti Industries – May face cost pressures if downstream demand drops.
Permanent Magnets Ltd (though a beneficiary if domestic capacity rises, could face short-term material constraints).
Banks with sectoral exposure:
While not directly affected, lenders with significant credit exposure to capital-intensive industries (like SBI, Bank of Baroda, or IDFC First Bank) may face higher NPA risks if supply-chain disruptions stall capex projects.
Investment -Key Sectors At Risk:
Sector: Exposure Risk Reason
Auto/EV Motors : use rare earth magnets
Electronics Motors, drives, sensors in appliances
Capital Goods: Dependence on magnetic components
Energy (wind/EV) Generators & motors for renewables
Defense: Precision electronics and guidance systems
Banking (indirect):Exposure to vulnerable borrower segments
