Latest news with #NdFeB
Time of India
13 hours ago
- Business
- Time of India
'Chinese threat' that made Donald Trump make deal with China is now worrying TV, speaker, smartwatch and other electronics makers in India
China's control over critical minerals, also called Rare earth metals/minerals, is reportedly a powerful bargaining chip in trade talks, as seen in recent US-China discussions. By easing export restrictions, China can secure concessions, such as tariff relief or relaxed visa policies, as hinted in negotiations where Trump claimed progress on access to Chinese magnets and minerals The America's reliance on China for these minerals is seen as a strategic vulnerability. In April, China reportedly restricted rare earth mineral exports in response to Trump's tariff increases. The export restrictions on rare earth minerals is said to have made President Donald Trump furious. On June 11, Trump announced on Truth Social that China agreed to supply the U.S. with these minerals as part of a trade deal, calling it 'done'. Rare Metal worries 'come to India' Similar worries about rare earth metals has reportedly come closer home. China's export controls on rare earth metals, particularly Terbium and Dysprosium used in Neodymium-iron-boron (NdFeB) magnets, is reportedly creating panic among speakers, wearables, and television and some other consumer electronic manufacturers in India. According to a report in Economic Times, China's export control licensing of rare earth metals is worrying electronics companies who are sitting on thin supplies of permanent magnets with the threat of production coming to a standstill looming large, industry executives and associations said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo Among the seven rare earth metals facing restricted exports, Terbium and Dysprosium are critical components in Neodymium-Iron-Boron (NdFeB) magnets, or permanent magnets, which is the preferred choice for high-performance, portable and compact audio products. These magnets are said to be vital for high-performance audio products, constitute 5-7% of the bill of materials, with India importing nearly 100% from China, per ELCINA 's whitepaper. ELCINA warned that the inability to procure NdFeB magnets could halt speaker production in Noida, Chennai, and Pune, potentially forcing OEMs to import finished speakers, undermining the "Make in India" initiative. Chinese port delays, requiring end-use declarations, are further disrupting speaker assembly units, delaying supplies to domestic TV and audio brands. According to the report, the industry body has claimed that shipments of magnets and even finished products with embedded magnets are being stopped at Chinese ports, pending end-use declarations. This is leading to production disruptions of speaker assembly units in India, delaying supplies to customers including domestic TV and audio brands. Indian manufacturers and importers are seeking government-issued end-use certificates to meet Chinese export requirements. IESA president Ashok Chandak attributed the crisis partly to India's lack of local processing capabilities and overreliance on imports, despite having critical mineral reserves. He told ET that the current situation can be partially blamed on Indian manufacturers who ignored the risk back in 2020. Since China's April export control announcement, magnet prices have risen 15%, with costs doubling when sourced from Japan, Vietnam, or recycled Indian suppliers, per ELCINA's analysis. What are '17 Elements' called Rare Earth Minerals Rare earth minerals are a group of 17 elements, including Scandium, Yttrium, and the 15 Lanthanides, found in the Earth's crust. Despite their name, they are relatively abundant, but extracting and processing them is complex, costly, and environmentally damaging. These minerals are critical for high-tech industries, powering everything from smartphone screens and electric vehicle motors to defense systems and medical devices. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
19 hours ago
- Business
- Time of India
China's rare-earth squeeze alarms tech; Groww's new play
China's rare-earth squeeze alarms tech; Groww's new play Want this newsletter delivered to your inbox? Also in the letter: Alarms ring at speaker, wearables, TV makers on Chinese rare-earth squeeze Driving the news: Of the seven rare earth metals now under export curbs, terbium and dysprosium are essential for making neodymium-iron-boron (NdFeB) magnets. These magnets are widely used in high-performance, portable and compact audio products. They typically account for 5–7% of the bill of materials, and Indian electronics makers remain almost entirely dependent on Chinese imports, according to a white paper by the Electronics Industries Association of India (ELCINA). Current state: China is holding back shipments of these magnets and related products at its ports, demanding end-use declarations before allowing export. This has disrupted operations at speaker assembly units in India and caused delays in deliveries to local TV and audio brands, according to ELCINA. To navigate the bottleneck, speaker manufacturers and importers have sought government help to secure end-use certificates, which Chinese exporters now require to obtain export licences, backed by full traceability documentation. Tell me more: Also Read: Groww looks to offer trading in corporate bonds, to apply for Sebi licence Driving the news: Signifiance: The OBPP licence will allow Groww to compete with platforms such as Wint Wealth and Grip Invest. It also positions the company to tap into India's underpenetrated bond distribution market, where retail participation has been steadily growing. That said, recent concerns around issuers like BluSmart have shaken confidence in the space. Expansion bid: With an initial public offering (IPO) on the horizon, Groww is steadily diversifying beyond stockbroking. It recently entered the credit space after receiving a non-banking finance company (NBFC) licence from the Reserve Bank of India (RBI). The firm has expanded into wealth management with its acquisition of Fisdom and began offering margin trade funding to investors last year. Background: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: IT stocks slip up to 3.5% after Fed holds rates, flags persistent inflation What happened: Big losers: LTIMindtree: Dropped 3.5% intraday, closed 1.6% lower. Tech Mahindra: Fell nearly 3%, closed down about 2%. The Nifty IT index slipped 1.4%. Infosys also slipped, closing down about 0.1%. Mid-sized firms, including Persistent Systems, Coforge, and Mphasis, declined between 1% and 2.6%. Why this matters: Explained: Sebi's new Esop norms for IPO-bound startup founders, reverse-flipping What's the news: Old rules: Founders were classified as "promoters" at the time of initial public offering (IPO) filings, which barred them from holding or being granted Esops. If they held any, they had to liquidate them. Founders were classified as "promoters" at the time of initial public offering (IPO) filings, which barred them from holding or being granted Esops. If they held any, they had to liquidate them. New norms: Founders who received Esops at least one year before filing the draft red herring prospectus (DRHP) can now retain them post-listing. Founders who received Esops at least one year before filing the draft red herring prospectus (DRHP) can now retain them post-listing. Flipback: Sebi will now also permit equity shares resulting from the conversion of Compulsorily Convertible Securities (CCS) to be included in an Offer for Sale (OFS), facilitating capital raising through public issues. About time: Microsoft prepared to abandon high-stakes talks with OpenAI Driving the news: The tech giant is reportedly considering pausing negotiations if the parties cannot reach an agreement on key issues, including the size of Microsoft's future stake in OpenAI. For now, Microsoft plans to lean on its existing commercial deal, which gives it access to OpenAI's technology through 2030, the FT report added. Meanwhile: Also Read: China's rare earth export controls are concerning Indian electronic manufacturers, who are facing production halts. This and more in today's ETtech Top 5.■ IT stocks tank■ Explained: Sebi's new Esop norms■ Microsoft vs OpenAIChina's curbs on rare earth curbs on rare earth exports have set off alarm bells across the electronics industry, with speaker, wearable, and television manufacturers warning of looming shortages of permanent magnets. Production could grind to a halt unless supplies resume, industry executives and associations sourcing from Japan, Vietnam, or even recycled magnets within India comes at a steep cost. ELCINA's price analysis shows these options nearly double input costs, with supply remaining patchy and unreliable.(L-R) Harsh Jain, Neeraj Singh, Lalit Keshre and Ishan Bansal, founders, GrowwOnline stockbroker Groww is planning to expand its mobile app to include trading in corporate Bengaluru-based firm plans to apply for an Online Bond Platform Provider (OBPP) licence, sources told us. While it already facilitates the primary sale of newly listed corporate bonds, it aims to offer secondary trading once it secures regulatory May, Groww confidentially filed its draft red herring prospectus with Sebi, aiming to raise between $700 million and $1 company recently raised $250 million in a funding round led by GIC , which valued it at $6.5 billion. For FY25, it reported total revenue of Rs 4,056 crore and a net profit of Rs 1,819 Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship IT stocks slipped in Thursday's trade after the US Federal Reserve kept interest rates unchanged, with LTIMindtree and Tech Mahindra leading the Fed held its benchmark rate steady at 4.25% to 4.5%, citing ongoing inflation concerns and a cautious economic marks the sixth consecutive meeting without a rate change. However, the latest 'dot plot'— a chart that reflects individual policymakers' forecasts—shows policymakers still expect two cuts in how major IT firms reacted:The Fed's cautious stance raises uncertainty around US growth and inflation. For Indian IT firms, which derive significant revenue from US clients, this could dampen client spending and contract Securities and Exchange Board of India (Sebi) has approved several measures to ease doing business, including a long-awaited change for startup founders The market regulator will allow startup founders to retain their employee stock options (Esops) even after their companies go has recognised past regulatory grey areas. Founders have long argued that the rules were unfair, often forcing them to exit early and miss out on long-term value CEO Sam Altman with Microsoft CEO Satya NadellaMicrosoft is prepared to step back from 'high-stakes' talks with OpenAI over the future of their alliance, the Financial Times reported on executives have discussed accusing Microsoft of anticompetitive behaviour, the Wall Street Journal reported on Monday . The two companies are also renegotiating the terms of Microsoft's investment, including its future equity position in the AI firm.
Time of India
a day ago
- Business
- Time of India
Alarms ring at speaker, wearables, TV makers on Chinese rare-earth squeeze
It's not just electric vehicles, China 's export control licensing of rare earth metals is creating panic among speakers, wearables, and television manufacturers who are sitting on thin supplies of permanent magnets with the threat of production coming to a standstill looming large, industry executives and associations said. Among the seven rare earth metals facing restricted exports, terbium and dysprosium are critical components in neodymium-Iron-Boron (NdFeB) magnets, or permanent magnets, which is the preferred choice for high-performance, portable and compact audio products. These magnets account for 5-7% of the bill of materials (BoM), depending on the product category, and electronics manufacturers in India import nearly 100% of their requirements from China, industry association ELCINA (Electronics Industries Association of India) said in a whitepaper presented to the government highlighting the issue. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 40세 미만이라면 이 매혹적인 게임을 하지 마세요 경복의 바다 플레이하기 Undo ETtech 'Inability to procure NdFeB magnets may halt speaker manufacturing lines in Noida, Chennai, and Pune. OEMs may switch to importing finished speakers, reversing the gains made under Make in India,' ELCINA said. Live Events Shipments of magnets and even finished products with embedded magnets are being stopped at Chinese ports, pending end-use declarations. This is leading to production disruptions of speaker assembly units in India, delaying supplies to customers including domestic TV and audio brands, the industry body said. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Arjun Bajaj, director at TV maker Videotex, confirmed that there have been delays from their supplier side due to non-availability and delayed shipments of permanent magnets from China. This has disrupted their product roadmap, fuelling the search for alternatives and solutions. 'We are working closely with our suppliers to ensure adequate stock for the upcoming season, thereby maintaining production continuity.' Bajaj said. "Additionally, based on supplier guidance, we are actively exploring alternative solutions such as ferrite magnets, which offer reasonable performance trade-offs," he added. Another TV manufacturer Super Plastronics Pvt. Ltd. that sources speakers from Indian contract manufacturers, said Chinese exporters have been waiting for over 60 days for license approval. 'If imports are impacted, consumers will suffer on sound quality as there is no alternative with that compact size to have that kind of sound output,' said Avneet Singh Marwah, CEO at SPPL. Speaker maker Sunvoice Electronics currently has only one month's stock till July, which is sufficient for current production, but will bring production to a halt unless its customers approve the use of inferior alternatives such as ferrite magnets. 'We will not be able to manufacture speakers. We have started looking for alternatives such as ferrite magnets, even though they are of inferior quality, as a short-term mitigation strategy. For standalone loud-speakers, magnets make up almost 50% of the cost of production,' said Chacko Mathew, CMD, Sunvoice Electronics, which supplies to Dixon Technologies, Videotex, Panasonic and more. 'But this is a compromise. Ferrite magnets, while cheaper, are also heavier and do not offer the same sound quality as Neodymium,' he added. Speaker manufacturers and importers have approached the government for end-use certificates required as part of the Chinese exporter's license approval process where they must provide extensive traceability documentation. Ashok Chandak, president, India Electronics and Semiconductors Association (IESA), said the current situation can be partially blamed on Indian manufacturers who ignored the risk back in 2020. "While several countries, including India, possess reserves of critical minerals, the lack of local processing capabilities—largely due to economic viability and limited market size (often just a few hundred million USD per material)—has led to an overdependence on imports," he said. Following the announcement of export control in April, prices of China-origin magnets have increased by 15% due to tightened supply, Mathew said, adding that ongoing negotiations with suppliers indicate that if import resumes, costs will remain elevated. However, prices of permanent magnets almost double when sourced from Japan, Vietnam, and even when procuring recycled magnets from Indian companies, while availability is limited and inconsistent, according to a price analysis done by ELCINA.
Mint
2 days ago
- Automotive
- Mint
Eicher, Maruti to TVS Motor: Auto stocks jump up to 2% on reports India may turn to Australia for rare-earth magnets
Auto stocks, including Eicher Motors, TVS Motor Company, and Maruti Suzuki, jumped up to 2% in Wednesday's trade, even as frontline indices remained range-bound. The strength in auto shares followed reports that India is looking to Australia as an alternative source for rare-earth magnets, aiming to reduce its dependence on China, which has imposed restrictions on these critical materials used in automobiles, defence, semiconductors, and other industrial products. Shares of Eicher Motors, TVS Motor Company, and Maruti Suzuki India rose by up to 2% intraday. Other constituents from Nifty Auto index such as MRF, Mahindra & Mahindra, and Bosch also rebounded from their intraday lows and were trading in the green. Sources told CNBC-TV18 that India is considering ramping up imports of rare-earth materials from Australia while also boosting domestic production under the National Critical Minerals Mission. Initiatives may include scaling up output, promoting recycling through circular economy models, and exploring support for mining beyond the existing Production Linked Incentive (PLI) scheme. From June onward, all mining operations will also be required to test their waste material for traces of critical minerals, the report stated citing the above sources. In April, China imposed restrictions on the export of seven key rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These elements are essential in producing magnets like neodymium iron boron (NdFeB) and samarium-cobalt (SmCo), which are used in various applications, including EVs. While Washington had anticipated a rollback of these April controls following a 90-day tariff reprieve agreement in mid-May, U.S. officials indicated after trade talks in London last week that Beijing may soon ease rare earth export limits. China remains the dominant force in the global critical minerals supply chain, accounting for roughly 60% of rare earth production and nearly 90% of processing. Since Beijing imposed these restrictions, India has been actively responding through diplomatic channels—including discussions led by the Indian embassy—and by diversifying supply chains. These efforts include sourcing from countries like Australia, increasing local production through Indian Rare Earths Ltd., and fostering innovation in the private sector. Earlier, Commerce and Industry Minister Piyush Goyal had called China's rare earth export restrictions a global "wake-up call," highlighting the risks of over-reliance on a single supplier. Despite India being heavily dependent on China for rare-earth magnets—currently importing nearly 80% of its requirement—the impact on auto stocks has remained limited. This is due to over 95% of vehicles sold in India are still powered by internal combustion engines (ICE). Rare-earth metals are primarily used in hybrid passenger vehicles and electric two-wheelers. However, EV adoption in India is still at a nascent stage, with penetration at just 7% for two-wheelers and 3% for passenger vehicles, according to Nuvama Institutional Equities. Although electric vehicle (EV) sales have grown at a strong compound annual growth rate (CAGR) of 25% between FY23 and FY25, this growth comes off a low base. Therefore, even if sales slowdown, the overall impact on the Indian auto sector is expected to be limited. Most EVs use Permanent Magnet Synchronous Motors (PMSMs), which rely on rare-earth magnets to maintain a stable magnetic field—especially under high temperatures. The use of PMSMs is significantly higher in EVs compared to hybrid or ICE vehicles. According to the report, the average rare-earth magnet usage per vehicle is about 0.8 kg for electric vehicles, 0.5 kg for hybrid vehicles, and only 0.1 kg for ICE vehicles. Thus, the impact of Chinese export restrictions will be highest on electric passenger vehicles, followed by hybrid passenger vehicles, and then electric two-wheelers. Conventional ICE vehicles will face minimal impact. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
News18
2 days ago
- Automotive
- News18
India's Car Industry Dodges China's Rare Earth Curbs, EVs To Feel The Heat The Most
Last Updated: Over 95% of vehicles in India run on internal combustion engines (ICE), which use very little rare earth material. India's auto sector is least impacted by the recent curb of rare earth magnets by China as over 95 per cent of vehicles in India's are internal combustion engine (IC) vehicles noted a report by Nuvama. Electric vehicles (EVs), along with hybrid passenger vehicles and electric two-wheelers, are likely to face the most impact from restrictions on rare earth materials (REMs). The report explained that while REMs are used in a wide range of industries, the biggest effect of the restrictions will be felt in the EV sector, particularly in EV motors. It stated 'The greatest impact of the above restriction in descending order will be electric PVs, hybrid PVs, and electric 2W. Conventional ICE vehicles will be least impacted". In India, EV adoption is still at an early stage, with penetration at just 7 per cent for two-wheelers and 3 per cent for passenger vehicles. Although EV sales have grown at a strong compound annual growth rate (CAGR) of 25 per cent between FY23 and FY25, the growth is on a low base. Therefore, even if sales decline, the overall effect on the Indian auto sector is expected to be limited. Most electric vehicles use Permanent Magnet Synchronous Motors (PMSMs), which rely on REMs to maintain a stable magnetic field, especially at high temperatures. The use of PMSMs is far higher in EVs compared to hybrid or ICE vehicles. As per the report, the average REM usage per vehicle is around 0.8 kg for electric vehicles, 0.5 kg for hybrid vehicles, and just 0.1 kg for ICE vehicles. Hence, the impact of the restrictions will be the highest on electric passenger vehicles, followed by hybrid passenger vehicles, and then electric two-wheelers. Conventional ICE vehicles will see minimal impact. In April, China imposed restrictions on the export of seven key rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These elements are essential in producing magnets like neodymium iron boron (NdFeB) and samarium-cobalt (SmCo), which are used in various applications including EVs. China currently controls over 90 per cent of global processing of rare earth elements, giving it significant control over the global REM supply chain. Though the restrictions are mainly aimed at the defence sector, the ripple effects will be seen across the auto, industrial, and aerospace industries. Auto manufacturers will now need to get end-user certification from the Chinese government to continue sourcing these materials. The process is expected to take around 45 days. First Published: June 17, 2025, 16:05 IST
