India urges automakers to invest in rare‑earth‑free R&D

New Delhi — The government is pressing the automobile sector to accelerate research into rare‑earth‑magnet‑free technologies, blending short‑term incentives with longer‑term R&D support.

Officials plan to channel resources from the ₹50,000 crore Anusandhan National Research Foundation (ANRF) and assess additional backing to help reduce dependence on China, which still controls over 90% of global rare‑earth processing capacity. The ANRF runs through FY28, with a central allocation of ₹14,000 crore and further funding from public and private donors.

A parallel ₹7,300 crore incentive for domestic magnet manufacturing is expected soon, while consultations have started to steer industry innovation. The push reflects supply risks after China restricted some magnet exports and growing concern about the high environmental and energy costs of rare‑earth mining and processing.

Indian OEMs and suppliers are already adapting: some makers have adopted rare‑earth‑free traction motors, others are using light rare‑earth magnets, and firms like Sona Comstar are developing lighter‑rare‑earth motor lines. Alternatives can increase component size and require design changes, so sustained R&D and consistent policy support are seen as essential to make transitions commercially viable.

Observers say boosting national R&D spending is critical to scale industrial alternatives and reduce strategic vulnerabilities.